Market volatility refers to the degree of variation in the price of financial assets over time. It is often measured by the standard deviation of returns, indicating how much prices fluctuate. High volatility means that prices can change dramatically in a short period, while low volatility suggests more stable prices. Factors contributing to market volatility include economic indicators, geopolitical events, and changes in investor sentiment. For example, news about interest rates or corporate earnings can lead to rapid price movements. Understanding volatility helps investors make informed decisions about risk and potential returns.