Huge one-day stock market gains, such as the Nasdaq 100’s 3% rally on Feb. 22, don’t necessarily mean we’re in a bull market. That’s an important reality check on the exuberance with which Wall Street greeted this gain (sparked by Nvidia’s blockbuster earnings). Big daily rallies in fact occur more frequently during a bear market.
Huge one-day rallies like we’ve seen lately are more common in bear markets
BusinessHuge one-day stock market gains, such as the Nasdaq 100’s 3% rally on Feb. 22, don’t necessarily mean we’re in a bull market. That’s an important reality check on the exuberance with which Wall Street greeted this gain (sparked by Nvidia’s blockbuster earnings). Big daily rallies in fact occur more frequently during a bear market.
Consider the chart below,…