Dot-com bust, 1987 crash had massive relief rallies similar to Wednesday's pop

Ari Levy - CNBC - 09/04
The Nasdaq had its second-best day on record on Wednesday, the kind of rally the market only sees during the worst of times.
The Nasdaq Marketsite is seen during morning trading on April 7, 2025 in New York City. 
Michael M. Santiago | Getty Images

Every bear market has days like this.

The Nasdaq soared 12% on Wednesday, the second-best day on record for the tech-heavy index and its sharpest rally since January 2001, which was the middle of the dot-com crash.

During the financial crisis in October 2008, the Nasdaq enjoyed two of its best five days ever. The other two came as the tech bubble was bursting. The index's sixth-best day since its beginning in 1971 came on March 13, 2020, as the Covid pandemic was hitting the U.S.

Of the 25 best days for the Nasdaq, including Wednesday, 22 took place during the dot-com collapse, the 2008-09 financial crisis or the early days of Covid. One occurred on Oct. 21, 1987, two days after Black Monday. The other was in November 2022.

Call it a dead-cat bounce, a relief rally or short covering. It's a familiar reaction during the worst of times for Wall Street.

Be prepared for plenty more v...
[Short citation of 8% of the original article]