Market reactions refer to the changes in the prices of financial assets, such as stocks or bonds, in response to new information or events. These reactions can be influenced by various factors, including economic data releases, corporate earnings reports, or geopolitical developments. Investors and traders analyze this information to make decisions, which can lead to immediate price fluctuations in the market. When a significant event occurs, such as a Federal Reserve interest rate change or a major company merger, market participants quickly assess the potential impact on the economy or specific sectors. This collective behavior often results in rapid buying or selling, causing the market to react swiftly to the news.