Back to glossary
FINANCIAL TERMS

Rally

Description

A rally means a period when prices in a market rise strongly. In simple terms, a rally happens when investors are buying and prices are moving higher. Rallies are important because they can show improving investor confidence, stronger demand for assets, or relief after a period of weakness. A rally can happen in stocks, bonds, commodities, or other markets. For example, if the stock market rises sharply for several days after positive inflation news, investors may call it a market rally. A rally does not always mean a long-term bull market has started. Sometimes a rally can be short-lived and prices may fall again later.