What term describes a market condition characterized by rising prices and investor optimism?

The term that describes a market condition characterized by rising prices and investor optimism is referred to as a bull market. In a bull market, investors are generally confident and willing to buy, leading to an upward trend in stock prices. This condition is often fueled by strong economic indicators, high consumer confidence, and increased corporate profits, contributing to a positive feedback loop that drives prices even higher.

Conversely, other terms like bear market, recession, and depression signify unfavorable market conditions. A bear market denotes a period of declining prices, while a recession is characterized by a significant decline in economic activity across the economy lasting longer than a few months. A depression is an even more severe and prolonged economic downturn. Therefore, a bull market distinctly captures the essence of rising prices and positive investor sentiment, differentiating it clearly from these more negative economic conditions.