SPX: S&P 500 Rallies 2% and Is Now Out of Correction as Traders Go Full Buy-the-Dip Mode

Despite China saying trade talks aren’t happening, investors rushed to scoop up attractive shares on discount, because you never know — what if Trump delivers some good news?

🚀 S&P 500 Exits Correction After 10% Pop

• The S&P 500 (SPX) surged 2% on Thursday to reclaim 5,485, officially exiting correction territory after a 10% climb off its April 8 low (though it’s still down 10% from its record high in February). It marks the end of a bruising slump — and the beginning of what looks like a broad-based return to risk appetite (unless a scary tweet goes out).
• The Nasdaq Composite IXIC jumped 2.7%, notching its third straight gain of more than 2%, an achievement it hasn’t done since April 2001 — right in the heart of the dot-com bear market. The Dow Jones Industrial Average DJI rallied 487 points, or 1.2%, to 40,093. It still needs to cross 41,410 to make its own comeback from correction land.

💡 Traders Bet on a Trump Pivot

• What’s driving the move? Chip stocks led the charge, with traders scooping up semis and AI names that got hammered during April’s volatility. And even though China said trade talks aren’t happening, that didn’t stop investors from betting that Trump could still spin up a deal — or at least tweet one into existence.
• There’s also been growing optimism that the White House administration will ease tariff pressure through one-off deals rather than broad hikes. That’s left money spinners willing to front-run good news, even if it hasn’t arrived yet.

👀 Data Drought and Chart Watching

• Interestingly, bonds rallied alongside stocks, breaking with their early-April tandem selloff. The 2-year Treasury yield fell to 3.79%, while the 10-year dropped to 4.3%, signaling that rate-cut hopes haven’t entirely left the chat.
• Not much economic news is on deck for Friday, giving traders some time to look at charts and figure out the next dinosaur-neck pattern or inverted zebra stripe teacup. Next week’s will be packed with the Fed’s favorite inflation measure and the nonfarm payrolls ready to roll.