The Stock Market Just Had One of Its Best Days Ever: Here's What History Says Comes Next.

Big up days are often an indicator that more pain is ahead.

Apr 14, 2025 - 14:05
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The Stock Market Just Had One of Its Best Days Ever: Here's What History Says Comes Next.

Wednesday, April 9, 2025, will go down in stock market history. With a 9.5% rise, the S&P 500 (SNPINDEX: ^GSPC) posted its third-best day ever going back to the index's inception in 1957, putting one year's worth of gains into a single trading session. Stocks soared after the Trump administration backed down from aggressive tariffs against every country except China (although tariffs on imports from China are now a whopping 145%).

But the S&P 500 dropped the following day, and was up slightly on Friday. No one knows what the next few weeks will look like -- and the past doesn't predict the future -- but my bet is that the volatile markets will continue.

While you might have cheered the massive up day in your portfolio, history says that more bleak days may be ahead. Here's why huge one-day rallies actually tend to be bearish indicators, not bullish, for the stock market.

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