---
title: What causes stock prices to go up or down?
description: "Prices primarily change due to supply and demand, driven by the following factors (not necessarily limited to these factors) - Investor sentiment (can impact demand-supply) - Company performance (profits, corporate updates) - Sector/industry performance or news - Global and domestic…"
url: "https://arafinserv.com/fa/beginners-guide-to-stocks/what-causes-stock-prices-to-go-up-or-down/"
updated: "2025-11-20"
category: Beginner’s Guide to Stocks
---

# What causes stock prices to go up or down?

Prices primarily change due to supply and demand, driven by the following factors (not necessarily limited to these factors)

- Investor sentiment (can impact demand-supply)
- Company performance (profits, corporate updates)
- Sector/industry performance or news
- Global and domestic economic indicators
- Interest rates and inflation
- News that can have an impact on the business of the company