A temporary rise in the price of a stock or market after a sharp decline. The term suggests that even a dead cat will bounce if dropped from high enough, meaning the bounce doesn't signal a real recovery. After the bounce, prices typically continue falling to new lows.
A stock drops from $100 to $60 over two weeks due to bad news. The next day, it jumps to $70 on some positive comments. However, within days it falls back down to $55, suggesting that brief rise was just a dead cat bounce.
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