A limited, short-lived resurgence in the price of a declining security. The term “dead cat bounce” is derived from the axiom “even a dead cat will bounce if it falls, or is dropped, from a great height”. The phrase was originated on Wall Street to refer to any small upward price movement in a downturn market, after which the market resumes its fall. However, it is generally used to describe any case where a company/ industry/ financial market/ economy experiences a temporary recovery during or following a sharp decline.
March 16, 2024
