Priced In

Priced in means that investors have already reflected an expected event or outcome in the current market price. In simple terms, if something is priced in, the market has already reacted to it. Priced in is important because markets may not move much when an expected event finally happens. If investors already expected a rate cut, earnings growth, or weak data, the actual event may have less impact unless it is different from expectations. For example, if everyone already expects the Fed to hold rates steady, that decision may be priced in before the announcement. Priced in does not mean the market cannot move. If the actual result is better or worse than expected, prices can still change sharply.