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Fortune
Fortune
Chris Morris

What is a dead cat bounce? Making sense of Wednesday's market spike amidst a sell-off

(Credit: TIMOTHY A. CLARY/AFP via Getty Images)
  • Traders wonder if Wednesday's rally was a "dead cat bounce." The term originated in the 1980s and is a familiar sight to long-time market observers.

The Nasdaq index surged 12% Wednesday, recording the second-best trading day on record. The Dow and S&P 500 also roared back after several days of massive losses following Donald Trump's tariff announcement. So why isn't everyone celebrating?

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