From CNBC: 2025-04-29 14:07:00

Market analysts suggest that periods of extreme volatility in the stock market can lead to strong stock returns. The VIX index, which measures expected market volatility, has historically indicated positive returns in the S&P 500 when volatility spikes above a level of 40.

Stock volatility surged in April after President Trump announced high country-specific tariffs, causing the S&P 500 to drop nearly 11% in two days. However, low expectations often result in “relief rallies,” where investors quickly return to stocks due to news not being as bad as anticipated.

Read more: This is what typically happens to stocks after periods of high volatility