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FINANCIAL TERMS

Rebound

Description

A rebound means prices rise again after falling. In simple terms, a rebound happens when a market or asset recovers some of its recent losses. Rebounds are important because they can show that investors are returning to the market after fear or selling pressure. A rebound may happen after better news, cheaper prices, or a change in expectations. For example, if stocks fall sharply on Monday but rise strongly on Tuesday, the Tuesday move may be called a rebound. A rebound does not always mean the weakness is over. Prices can rebound briefly and then fall again if the underlying problems remain.