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As the Dow and S&P claw back their 2025 losses, they’re setting up for an extremely rare comeback victory - MarketWatch

1. S&P 500 erased earlier losses, aiming for a rare annual comeback. 2. Historically, S&P recovered only thrice following steep drops since 1950. 3. Current momentum appears bullish, rising 17.5% from April lows. 4. Investor sentiment remains mixed amid concerns over market valuations. 5. Tariff reductions and trade deals provided significant support for stocks.

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FAQ

Why Bullish?

The S&P 500's recovery and positive momentum suggest strong buyer confidence. Previous recoveries were linked to robust market performances afterwards, as seen in 1982, 2009, and 2020.

How important is it?

The article outlines significant market trends and sentiment shifts, directly influencing S&P 500 pricing and investor behavior.

Why Short Term?

The current bullish trend may be influenced by immediate reactions to trade policies and market sentiments. Past similar patterns resulted in short bursts of stability before long-term trends reasserted.

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