Market Swoon

Written By
Paul Tracy
Updated November 4, 2020

What is a Market Swoon?

A market swoon is an abrupt fall in the value of a market index.

How Does a Market Swoon Work?

Derived from a term meaning "to faint" or "pass out," market swoon is a vernacular expression that describes a sudden and widespread loss in the value of stocks across an entire market.

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 Does a Market Swoon Matter?

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.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Market Swoon.
Be the first to ask a question

If you have a question about Market Swoon, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Market Swoon, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Market Swoon

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms