Wall Street reacts to everything. It has its own moods. It has its own psychology.
The stock market can be seen as an auction, where many companies are up for sale for the highest bidders. It all comes down to supply and demand. When there is no demand for shares, the shares are worth less. When there is high demand for shares, the share price will be high. Factors that affect supply and demand include company news and performance including earnings, mergers, new products, dividends, and the economy as a whole.Continue Reading..