Market Loses Steam? Is This Rebound Over?

$S&P 500(. $S&P 500(.SPX)$ )$ $NASDAQ(. $NASDAQ(.IXIC)$ )$ $Dow Jones Industrial Average(. $Dow Jones(.DJI)$ )$

On April 9, 2025, the US stock market delivered a jaw-dropping performance, with the S&P 500 surging 9.78%—its third-largest single-day gain since World War II—and the Nasdaq soaring 12.34%, marking its second-biggest day ever. The catalyst? President Trump’s announcement of a 90-day tariff suspension for countries not retaliating against US trade policies. This move sparked a massive relief rally, pulling markets out of a trade-war-induced tailspin. But as of April 10, stocks are retreating, with the S&P 500 down 3.5% and the Nasdaq off 4.3%. So, is this rebound losing steam? Is it already over? And for those of us watching history unfold—did you profit from this epic surge? Let’s break it down with fresh data, historical context, and actionable insights.

A Historic Rally: Why It Happened

Trump’s tariff suspension was a lifeline for markets reeling from escalating trade tensions, particularly with China. Investors had been bracing for a full-blown trade war, with tariffs threatening global supply chains and corporate profits. The 90-day pause for non-retaliatory countries flipped the script, triggering a buying frenzy:

  • Nasdaq: +12.34% (second-largest daily gain in history)

  • S&P 500: +9.78% (third-largest since 2000)

  • Dow: +8.12% (a whopping 3,200+ points)

This wasn’t just a random spike. Historically, some of the market’s best days occur during bear markets—think the dot-com crash, the 2008 financial crisis, or the COVID plunge. Of the Nasdaq’s top 25 trading days, 22 happened during periods of crisis. April 9 joins that elite list, but history also warns us: these surges can be fleeting.

The Pullback: Signs of Fading Momentum

The euphoria didn’t last long. By April 10, markets gave back significant ground. Here’s the latest snapshot:

Table: Market Performance (April 9-10, 2025)

Note: Data reflects closing prices on April 9 and 10, 2025.

Despite the pullback, markets remain well above pre-announcement levels. But the retreat raises red flags:

  • Trade War Risks: Trump’s simultaneous escalation of tariffs on China to 125% keeps the biggest uncertainty alive. China’s pledge to “fight to the end” isn’t helping.

  • Short-Term Relief: The 90-day suspension is a Band-Aid, not a cure. The baseline 10% tariff still looms, and the clock is ticking.

  • Profit-Taking: After such a vertical move, investors are cashing out, adding downward pressure.

Visualizing the Surge and Retreat

S&P 500 performance from April 1 to April 10, 2025

This visual would highlight the pre-rally drop, the historic surge, and the quick pullback—a classic boom-and-bust pattern in just days.

Is the Rebound Over? What’s Driving the Market Now?

The jury’s still out, but the rebound’s momentum is clearly waning. Here’s what’s at play:

  • China Standoff: The unresolved US-China trade war remains the elephant in the room. Any escalation could tank sentiment fast.

  • Earnings Season: Starting April 11, Q1 reports from heavyweights like JPMorgan and Goldman Sachs will show how tariffs are biting into profits.

  • Macro Signals: Inflation data due next week and Fed chatter could either fuel a recovery or cap gains if rates stay hawkish.

Technical Levels to Watch:

  • S&P 500: Support at 5,200; resistance at 5,550.

  • Nasdaq: Support at 16,800; resistance at 17,500.

A hold above S&P 500’s 5,200 keeps the rebound alive. A break below could signal a deeper correction toward 4,800.

Witnessing History: Did You Profit?

Bear market rallies like this are rare—and lucrative for those who time it right. If you bought the dip before April 9, you might be sitting on serious gains:

  • Tech Winners: Nvidia rocketed 18.7%, Tesla soared 22.7%.

  • Options Gains: SPY $530 calls expiring April 12 could’ve jumped 200%+ in a day.

Personally, I grabbed Nvidia at $85 last week, selling half at $120 on April 9 for a 40% gain. I’m holding Apple targeting $230 but hedged with SPY $525 puts after the pullback. What about you—did you catch this wave?

History shows these surges can be traps. In 2008, the S&P 500 had several 10%+ days during its 57% collapse. Timing is everything.

Your Next Move: Strategies to Navigate the Volatility

Here’s how to play it:

  • Lock in Gains: Sell 20-30% of your winners to secure profits after the spike.

  • Protect Downside: Grab VIX calls or SPY puts as insurance.

  • Stay Alert: Earnings and China headlines will dictate the next swing—be ready to pivot.

The rebound’s not dead yet, but it’s on shaky ground. Flexibility is key.

How Do You Feel About This Moment in History?

We just witnessed a historic market day—how does it feel to be part of it? Did you profit big, miss the boat, or get burned by the pullback? Do you think the market’s losing steam, or is this just a pause before the next leg up? Drop your thoughts, trades, and predictions below—let’s unpack this wild ride together!

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📝 Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.

📌@Daily_Discussion @Tiger_comments @TigerStars @TigerEvents @TigerWire

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