Market stability refers to a condition in which financial markets operate in a predictable and consistent manner, characterized by low volatility, steady pricing, and a balanced supply and demand for various assets. In a stable market, price fluctuations are minimal and do not experience extreme highs or lows, facilitating a sense of confidence among investors and participants. Stability allows for long-term planning and investment, as stakeholders can better forecast future market conditions. It is typically influenced by regulatory frameworks, economic indicators, investor sentiment, and external factors such as geopolitical events. Central banks and policymakers often aim to enhance market stability to promote economic growth and minimize the likelihood of financial crises.
As President Donald Trump stepped into the Oval Office, market reactions took a notable approach. Despite significant political transitions, stocks have not experienced their expected volatility. On the first day…