When and why does the stock market fall?

 The stock market can fall for a variety of reasons, including economic downturns, interest rate hikes, geopolitical events, and company-specific news such as earnings misses or scandals. These events can cause investors to lose confidence in the market and sell their stocks, leading to a decrease in stock prices. 

Additionally, market corrections, which are defined as a decline of at least 10% from a recent high, are considered normal and healthy occurrences in the market. They happen from time to time as a way for the market to adjust to an overvaluation of assets.

There are many other factors that can cause the stock market to fall. For example, a recession, high unemployment, and rising inflation can all lead to a decline in stock prices. Additionally, natural disasters and pandemics can disrupt economic activity and lead to a decrease in stock prices.

Another factor that can cause the stock market to fall is a change in interest rates. When interest rates rise, it becomes more expensive for companies to borrow money, which can hurt their profits and lead to a decline in stock prices. Additionally, higher interest rates can make bonds more attractive to investors, leading them to move money out of stocks and into bonds, which can also cause stock prices to fall.

Finally, company-specific news can also cause the stock market to fall. For example, if a company announces poor earnings or a scandal that affects its reputation, its stock price may fall. Additionally, if a company's management team is perceived as not being able to effectively run the company, its stock price may also fall.

It's important to note that the stock market can be volatile and can fluctuate rapidly. While a fall in stock prices can be concerning, it's important to remember that it is a normal part of the market cycle and that over the long-term, the stock market has historically trended upward.