One of the primary drivers of market impulse is the release of economic indicators, such as employment figures, inflation rates, and GDP growth. These indicators provide insights into the health of an economy and can significantly influence investor sentiment. For example, better-than-expected employment data might trigger a positive market impulse, leading to a surge in stock prices as investors anticipate stronger economic growth.
Geopolitical events also play a critical role in creating market impulses. Events such as elections, conflicts, or diplomatic agreements can introduce uncertainty or confidence into the markets. For instance, the announcement of a trade agreement between major economies might result in a positive market impulse due to the expected benefits of reduced trade barriers.