The Market Reacts to New Information
Share prices move because of new information reaching buyers and sellers, changing what they believe a company (or the whole market) is worth. If everyone already expected something, the price often does not move much when it happens — but a surprise moves prices sharply.
Key Drivers of Price Movement
1. Company Results
Every quarter, companies announce their financial results (profit, revenue, growth). Better-than-expected results often push a stock's price up; worse-than-expected results often push it down.