Animal spirits, a term referencing emotions and instincts guiding human behavior in financial markets, play a significant role in driving market volatility. These animal spirits, manifested through fear, greed, and sentiment, can lead to abrupt price fluctuations and market swings. The impact of animal spirits on market volatility is profound, influencing investor decisions and market dynamics. Emotions such as optimism or pessimism can trigger herd behavior, causing markets to overreact to news and events. Understanding and managing these animal spirits is crucial for investors to navigate volatile markets effectively. Awareness of these emotional drivers can help investors make more informed and rational decisions.