Stock market breaks records but the story suggests this is a bear market rally

Nasdaq closed 12% higher Wednesday, marking his second largest gain in history following President Trump’s decision to put the implementation of tariffs for 90 days. Strategy (Mstr), one of the fastest resuming warehouses and a component of the Intesco QQQ Trust, Series 1 (QQQ) ETF, increased 25%.

Meanwhile, the S&P 500 climbed nearly 10%and recorded its third largest one-day gain-only surpassed by two days in 2008.

While this may seem bullish on the surface, it is worth noting that Nasdaq’s three largest events occurred in 2001 and 2008 – both during recessions and followed by new low ones. Similarly, the S&P 500’s two major green days were also during the financial crisis in 2008. Investors must be aware of bear market presentations.

There are growing speculation as to why Trump supported customs. Globally, the rising bond yields were rattled markets. According to Fox Business Senior Correspondent Charles Gasparino, the pressure on the bond market may be stemmed from Japan that has sold bonds – not China, as many had assumed.

When the market was together, the VIX (Volatility Index) closed at 34 and recorded the biggest fall on a day’s percentage in its history and surpassed the record in 2010.

Bitcoin (BTC) also saw an increase that briefly gathered over $ 82,000. However, it remains within the downward channel it has followed since January.

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