The S&P 500 Is Up 10.8% From Its April Low Point. History Says This Could Happen Next.

So far, 2025 has been a volatile year for the stock market. President Donald Trump held a press conference on April 2 where he announced sweeping new 10% tariffs on imported goods from nearly every country in the world, as well as a series of much higher "reciprocal tariffs" on goods from most countries. These import taxes rocked investor sentiment because they have the potential to stall America's economic growth.By April 8, the S&P 500 (SNPINDEX: ^GSPC) -- which was already down by more than 8% before Trump's announcement -- had slumped to 19% below its peak, just shy of the bear market threshold of 20%. However, it has since rebounded with a 10.8% gain from its low point for two reasons: First, Trump quickly placed a 90-day pause on the reciprocal portion of his threatened tariffs (except those on Chinese goods), and second, numerous countries have apparently begun to negotiate trade deals with the White House.Investors might be wondering what the S&P 500 will do next. Does its rebound have legs, or will the sell-off resume? Although it's impossible to say with certainty, history offers an indication of what might be around the corner.Continue reading

Apr 30, 2025 - 09:59

The S&P 500 Is Up 10.8% From Its April Low Point. History Says This Could Happen Next.

So far, 2025 has been a volatile year for the stock market. President Donald Trump held a press conference on April 2 where he announced sweeping new 10% tariffs on imported goods from nearly every country in the world, as well as a series of much higher "reciprocal tariffs" on goods from most countries. These import taxes rocked investor sentiment because they have the potential to stall America's economic growth.

By April 8, the S&P 500 (SNPINDEX: ^GSPC) -- which was already down by more than 8% before Trump's announcement -- had slumped to 19% below its peak, just shy of the bear market threshold of 20%. However, it has since rebounded with a 10.8% gain from its low point for two reasons: First, Trump quickly placed a 90-day pause on the reciprocal portion of his threatened tariffs (except those on Chinese goods), and second, numerous countries have apparently begun to negotiate trade deals with the White House.

Investors might be wondering what the S&P 500 will do next. Does its rebound have legs, or will the sell-off resume? Although it's impossible to say with certainty, history offers an indication of what might be around the corner.