Market sentiment - Financial definition
Concise definition of the term market sentiment
Market sentiment refers to the overall attitude or feeling of investors towards a particular market, asset, or security, often influencing buying and selling decisions.
Comprehensive definition of the term market sentiment
Market sentiment encompasses the collective emotions and perceptions of investors, ranging from optimism to pessimism, regarding the future performance of a market, asset class, or individual security. It can be influenced by various factors such as economic indicators, geopolitical events, company earnings reports, and news headlines, and is often gauged through sentiment indicators, surveys, and technical analysis.
For example, a positive market sentiment may lead to increased buying activity, pushing prices higher, while a negative sentiment may result in selling pressure and price declines. Understanding market sentiment is crucial for investors and traders to anticipate market movements and adjust their strategies accordingly.