United States stocks staged a remarkable recovery at the end of April and start of May, Bloomberg reported.
This was barely one month after U.S. president Donald Trump blindsided investors with his aggressive tariff plans that sent markets plunging.
Markets show resilience
Despite the uncertainty globally, the S&P 500 has risen by nearly 12 per cent since its close on Apr. 8, the day before Trump announced a pause on some of the tariffs, which resulted in one of the index’s best single-day gains in history.
What helped the rebound were the strong tech earnings that disrupted the “sell America” narrative due to the tariff shock.
The S&P 500 rose for eight consecutive days by May 1, its longest winning streak since August 2024.
It was also the strongest eight-day winning streak since November 2020.
The Nasdaq 100 finished 1.1 per cent higher.
Tech led jump
Microsoft and Meta jumped on upbeat results.
A report of the U.S. considering a potential easing of restrictions on Nvidia’s sales to the United Arab Emirates (UAE) pushed shares higher during regular trading hours.
Retail investors benefit
Market Watch reported data showing that many amateur traders bought the dip and leaned into the volatility a month ago.
Professionals on Wall Street, on the other hand, stayed away, but are making up for lost time now.
They apparently did not buy the dip due to their assessment of broader uncertain macro conditions, and also given that the “systematic funds with prominent risk-management strictures” were not as reactive to such extreme short-term volatility, Market Watch added.
Top photo via Unsplash
