


Thursday, April 10, 2025


Wall Street might be enjoying a short-term bounce, but don’t let the rally fool you. According to history—and the pros tracking it—a full S&P 500 recovery by year-end looks like a long shot.
Sure, Wednesday’s nearly 10% surge gave investors a break from the bloodbath, but context matters. The S&P 500 had just suffered its worst four-day stretch since the pandemic crash in March 2020. And according to Carson Group’s Ryan Detrick, the S&P has only recovered to end the year positive three times out of 16 when it dropped 15% or more during the year. Those recoveries happened in 2020, 2009, and 1982—each time powered by aggressive Fed support.
This year? The Fed’s staying on the sidelines.
Fed Chair Jerome Powell made it clear last week: don’t expect a rescue operation. Inflation’s still a problem, and Trump’s renewed tariff offensive could only make it worse. So unlike past downturns, this one might not come with a monetary parachute.
Kathryn Rooney Vera at StoneX said it bluntly: “A lot of damage has been done.” And with more hot inflation data expected, the Street’s not betting on a quick recovery.
Even seasoned market voices like Matt Maley from Miller + Tabak are waving caution flags. “If you don’t get some help from the Fed, it’s going to be hard for the market to bounce back in a significant way,” he said.
In other words: Don’t expect 2020-style magic.
Yes, the S&P staged a record-breaking rally after Trump paused tariffs for 90 days. But that’s a breather—not a solution. Until inflation cools and the Fed changes its tune, a full rebound is wishful thinking.
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