Bullish View: S&P 500’s 2.6% Decline Seen as a Healthy Correction, Rebounds Expected on Monday

Huoxing Finance reports that on June 7, Bull Theory released a market outlook stating that the S&P 500’s approximately 2.6% drop on Friday triggered market panic, but when viewed against a 75-year historical perspective, this volatility doesn’t even rank among the top 200 single-day largest declines. Since 1949, the S&P 500 has weathered numerous major crashes—including the 20.47% single-day plunge on Black Monday in 1987, the 11.98% collapse during the 2020 COVID-19 pandemic, and the 9.03% decline during the 2008 financial crisis—yet each time, the index eventually recovered and reached new highs, rising from just a few dozen points to over 5,500. Friday’s pullback was merely a normal “breather” within a bull market, representing healthy consolidation rather than a trend reversal. Historically, the S&P 500 has survived multiple shocks, including the dot-com bubble burst, the 1998 Long-Term Capital Management collapse, debt ceiling crises, and Trump-era tariffs—yet its long-term upward trend has never been broken by a single-day plunge. Friday was not the end; the S&P 500 has always rebounded higher after enduring downturns. We remain bullish on a rebound following Monday’s open.