Why do stocks go up on bad news?


Stock prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Similarly, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.

The mentality of people changes due to the news and the people starts to buy or sell their stock causing the stock market prices to fluctuate. In this case, the bad news triggers the opportunity for the buyers which causes the stock prices to go up.

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(Source: https://www.quora.com/Why-do-stocks-go-up-on-bad-news)


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