S&P 500 Rebounds From 10% March Drop to New Highs as U.S.-Iran War Rattles Markets
Updated
Updated · The Rafu Shimpo · May 23
S&P 500 Rebounds From 10% March Drop to New Highs as U.S.-Iran War Rattles Markets
2 articles · Updated · The Rafu Shimpo · May 23
Summary
A roughly 10% March slide in the S&P 500 was fully erased by April, with the index climbing to fresh highs despite the ongoing U.S.-Iran war.
The selloff followed the U.S. entry into the conflict and fading hopes for a quick resolution, which sharply darkened investor sentiment during March.
The rebound underscored how fast recoveries can follow steep declines, raising the risk that investors who sold into the drop missed some of the market’s strongest days.
The report argues the episode was a reminder to rebalance portfolios and keep bonds or other diversifiers in place, since 10% corrections typically occur every one to two years.
Looking through the end of 2026, it warns volatility may persist as war-driven gas prices, leadership change at the Fed, election risk and renewed tariff fights all cloud the outlook.