Market volatility refers to the degree of variation in the price of financial assets, such as stocks or bonds, over a specific period. High volatility indicates that prices can change rapidly in either direction, while low volatility suggests more stable prices. Factors contributing to market volatility include economic news, political events, and changes in investor sentiment. Investors often monitor market volatility to assess risk and make informed decisions. Tools like the VIX index, which measures expected volatility in the S&P 500, help traders gauge market conditions. Understanding volatility can aid in developing strategies for investment and risk management.