Market Snapback: Now What?

U.S. stocks staged a violent rebound with Dow hitting 50,000. Here's how to navigate the AI infrastructure boom, hedge fund software shorts, and where smart money is flowing now.

After several days of irrational sharp declines, U.S. stocks staged a sharp retaliatory rebound on Friday. Capital quickly shifted from panic selling to a “buy-the-dip” mode, with all three major indices rebounding across the board.

The standout performer was the Dow Jones Industrial Average, which surged more than 1,200 points in a single day, marking the first time in history it closed above the psychologically significant 50,000-point milestone. Trump later posted congratulations on social media, hailing it as the latest landmark following years of strong U.S. economic growth.

Meanwhile, the S&P 500 recorded its largest single-day gain since May last year, technically completing a precise rebound from the 100-day moving average.

Cooling inflation and returning confidence

The direct trigger for this rebound came from macroeconomic data that eased market sentiment. The University of Michigan reported that the U.S. February consumer sentiment index unexpectedly rose to a six-month high, while one-year inflation expectations fell to a 13-month low.

This partially offset concerns from earlier weak employment data in the week and provided the market with a window to “catch its breath emotionally”.