Data: The previous four violent rebounds in U.S. stocks were all "flashes in the pan" during bear market crises
According to Jinshi data statistics, the Dow Jones Index preliminarily closed up nearly 3000 points yesterday, an increase of 7.87%, which is the largest increase in history. The S&P 500 index rose by 9.52%, marking the biggest single-day gain since 2008. The Nasdaq Composite Index rose by 12.16%, marking its biggest gain since January 2001. However, several record-breaking surges in history have occurred during bear market crises as a "last hurrah", including:
After "Black Monday" in October 1987 - The Nasdaq once plummeted by 27% on "Black Monday" in October of that year and rebounded about 10.4% two days later.
During the period of the internet bubble burst in 2000 - The NASDAQ experienced a significant drop during this time, but also saw several rebounds, such as a 7.8% rebound on April 18, 2000.
During the financial crisis of 2008-2009 - The NASDAQ fluctuated dramatically during this time. After government market rescue measures were implemented, it rebounded by 11.81% on October 13, 2008.
In the "bear market year" of 2022 - After experiencing continuous declines for the first three quarters, due to US CPI data being lower than expected and market expectations that inflation had peaked, the NASDAQ rebounded by 7.35% on November 10th.
The Trump Tariff Era - After the implementation of Trump's tariff policy, the NASDAQ fell by 13% in four trading days. Early this morning, Trump suddenly announced a 90-day suspension of reciprocal tariffs, causing a significant rebound in US stocks and a 12% rise in the NASDAQ.
Analysts say that compared to previous "last-minute rallies", there is one major difference with this stock market turbulence: many investors have said it could easily be avoided if only Trump changed his decision. However, companies still face an uncertain outlook. Many businesses may need to pause their plans and clarify how existing and anticipated tariffs will affect costs and damage revenues, as well as what actions they must take to strengthen their supply chains.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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