The Stock Market Is Doing Something for the 75th Time in 35 Years, and History Says the S&P 500 Will Make a Shocking Move Next
President Donald Trump shocked Wall Street when he announced a raft of severe tariffs on April 2, a date he dubbed "Liberation Day." Most analysts assumed a 10% universal tariff was the worst-case scenario, but Trump used that as a starting point and tacked on much higher country-specific reciprocal tariffs.The S&P 500 (SNPINDEX: ^GSPC) crashed in the following days as strategists issued dire warnings, cut earnings estimates, and raised recession probability forecasts. The index closed nearly 19% below its record high on April 8. Meanwhile, the CBOE Volatility Index (VOLATILITYINDICES: ^VIX) rocketed above 50 for only the 75th time since 1990.The S&P 500 has since rebounded 14% as Trump has softened his stance on trade policy, at least temporarily. That means the stock market is doing something rarely seen in the last 35 years: recovering from a period of extreme volatility. And history is crystal clear about what happens next.Continue reading
President Donald Trump shocked Wall Street when he announced a raft of severe tariffs on April 2, a date he dubbed "Liberation Day." Most analysts assumed a 10% universal tariff was the worst-case scenario, but Trump used that as a starting point and tacked on much higher country-specific reciprocal tariffs.
The S&P 500 (SNPINDEX: ^GSPC) crashed in the following days as strategists issued dire warnings, cut earnings estimates, and raised recession probability forecasts. The index closed nearly 19% below its record high on April 8. Meanwhile, the CBOE Volatility Index (VOLATILITYINDICES: ^VIX) rocketed above 50 for only the 75th time since 1990.
The S&P 500 has since rebounded 14% as Trump has softened his stance on trade policy, at least temporarily. That means the stock market is doing something rarely seen in the last 35 years: recovering from a period of extreme volatility. And history is crystal clear about what happens next.
