Market reaction refers to how investors respond to news or events that impact the financial markets. This can include changes in stock prices, bond yields, or currency values based on new information, such as earnings reports, economic data, or geopolitical events. The reaction can be immediate or gradual, reflecting the collective sentiment of market participants. Factors influencing market reaction include investor psychology, market trends, and the perceived significance of the news. For example, a positive earnings report from a company like Apple may lead to a surge in its stock price, while negative economic data could cause a broader market decline.