What is the term for a temporary rise in a falling stock market?

A temporary rise in a falling stock market is called a dead cat bounce.

The phrase describes a small, brief recovery in a declining stock or market index that is followed by renewed weakness. It is based on the dark saying that “even a dead cat will bounce if it falls from a great height,” emphasizing that a short upward move does not necessarily signal a lasting recovery.

The term is generally associated with financial journalism in December 1985, when the Singaporean and Malaysian stock markets rebounded modestly after a steep fall. The markets later continued declining, making the phrase an especially apt description. It became more widely used in the 1990s and 2000s.

A dead cat bounce can be fueled by short sellers buying shares to close positions, bargain hunters, temporary good news or a shift in market sentiment. Traders often identify the pattern only in hindsight, after prices resume falling. “Sucker rally” and “bear-market rally” are related expressions, although they can be used more broadly.