John Authers, Columnist

Big Bounces Are Poor Stock Market Indicators

The rebound after a major plunge doesn’t tell us a lot about the future direction.

March 3, 2020 at 12:07 AM EST

John Authers is a senior editor for markets and Bloomberg Opinion columnist. A former chief markets commentator at the Financial Times, he is author of “The Fearful Rise of Markets.”

And the direction is... up (for now).
Photographer: Edmond Terakopian/PA Images/Getty Images

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE

This article is for subscribers only.

To get John Authers' newsletter delivered directly to your inbox, sign up here.

Bouncing’s what Tiggers do best, as we all know. And after a big fall, we can all expect a stock market to stage a Tigger. That is certainly what happened Monday, as the S&P 500 gained more than 4% for its third best day in the last 10 years:

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE