It is clear to see that the stock market is going to have its ups and downs; it is important not to overreact to the volatility.
It’s is a contraction of it is or it has; it never shows possession. To test whether you need it’s or its, try substituting the phrase it is or it has. If either of those work, you need the apostrophe. If neither of them make sense in your sentence, you don’t need the apostrophe.
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