What Causes the Stock Market to Move?

[Kane]

The stock market's movements are influenced by various factors and it goes beyond supply and demand dynamics. While buying and selling activities play a key role in stock market movement, other significant factors also affect the stock market, for instance, the country's economic situation, monetary policies, business performance, etc. There is a noticeable correlation between the stock market and inflation. When inflation rises, the purchasing power of money decreases, resulting in higher production costs and reduced profit margins for businesses, which results in stock market down turn.