3. General Industry News
With many publicly traded firms centred on a specific sector - such as energy, retail or technology - sometimes news about such financial sectors can have a wide impact on all companies within that industry. So for example, if news breaks that the demand for gold is less than the total supplied by the industry as a whole, mining firms which focus on gold are likely to be affected.
It’s also possible for news about one particular company to have an impact on similar firms within the same industry. Tesco’s difficulties in 2014 saw its stock price plummet, which caused a slump for the stock prices of other supermarket companies. Tesco’s poor performance acted as an indicator to investors that the sector as a whole would be facing problems.
Takeover speculation is another common factor that can influence the share value of a firm, as are changes in executive management and radical changes in strategy.