What it is:
A market swoon is an abrupt fall in the value of a market index.
How it works (Example):
A market swoon is generally characterized by a substantial interruption in trading combined with a high trading volume. An example of a market swoon would be a steep decline in the value of the S&P 500 Index.
Why it Matters:
Market swoons frequently occur in response to economic or political shocks (for example, interest rate increases and international conflicts). The market often recovers from a market swoon in a relatively short span of time.