A recent Marketwatch article discusses the stock market’s curious response to last weekend’s political news. The weekend headlines about a new cold war were met with a stock rally on Monday (The Dow Jones Industrial Average gained 182 points). But what exactly is a rally?
A rally is a period of continual increases in the prices of stocks, bonds or indexes. This can occur either during a bull or a bear market (known as a bull market rally or a bear market rally). A rally usually comes after a period of flat or declining prices. See the video below by MarketNewsVideo.com for more.