There are several factors that can influence the price movement of a stock during a trading session and over time. These include fundamentals related to the company itself, such as revenue and profits, as well as external factors such as the macroeconomic climate and geopolitical issues.

Earnings Reports

A key measure of a company's performance is its financial report, which is usually released quarterly or semi-annually. These reports show how much money the company is making from sales and other activities and how much profit it is generating.

Earnings reports show the company's cash flow. If the company pays dividends, the report also shows how much they will be. The release of a company's earnings report often causes the stock price to rise sharply or fall if it beats or falls short of analysts' expectations.

Economy

The overall economic performance of the country in which a company operates has a strong impact on stock price movements. Strong economic growth tends to push up the prices of most stocks, while a recession can push them down, even if individual companies continue to post strong financial results.

Politics

Government policies and political events such as elections and international conflicts have a strong impact on stock markets. In particular, companies that are affected by international trade policies may see a strong impact on their stock prices, such as when the US and China entered a trade war by imposing tariffs on each other’s imports.

Supply and Demand

Supply and demand trends affect a company’s financial performance – if for some reason the demand for its products and services increases or decreases, or the supply changes. Demand for a company’s stock can also change based on demographics.

For example, during the Covid-19 lockdown, new investors entered the stock market for the first time, increasing demand for certain stocks that have become known as meme stocks.

Institutional demand and ownership can also affect prices, such as when a large institutional investor sells off a stock, or when a stock is added to an exchange-traded fund (ETF).

Trader Sentiment

Market sentiment has a strong impact on stock prices. Stocks can often trade much higher or lower than the company's fundamentals suggest due to the subjectivity of traders and investors. Participants may buy or sell stocks based on news, competitor announcements, new data releases, and other events.

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