#MarketRebound

Rebound: Definition, Causes, and Historical Examples

What is a Rebound in Finance?

In finance and economics, a rebound refers to a recovery from a previous period of negative activity or losses—such as a company posting strong results after a year of losses or introducing a successful product line after struggling with a false start.

In the context of stocks or other securities, a rebound means that prices have risen from lower levels.

In general economics, a rebound means that economic activity has picked up from lower levels, such as a recovery after a recession.

Key Takeaways

A rebound occurs when an event, trend, or security reverses direction and moves up after a period of decline.

A company might report strong earnings in its fiscal year after a loss the previous year, or a successful product launch after several failures.

In the context of the stock market, a rebound can mean a day or period of time in which a stock, or the stock market as a whole, recovers after a sell-off.

In economics, a rebound is part of the normal business cycle that includes expansion, peaks, recessions, troughs, and recoveries.