What Sparked Them and What Happened Next

The stock market is known for its ups and downs, but some days stand out as legendary comebacks. We’re talking about those massive one day rallies. The moments when stocks skyrocketed in just a few hours, reversing days (or even weeks) of brutal losses. These kinds of surges often happen after periods of extreme pessimism, usually triggered by big economic news, government intervention, or sheer investor panic flipping to optimism.

Let’s dive into some of the biggest single day stock market gains in history, what caused them, and what happened next.

The Biggest One Day Market Surges

Here are the most jaw dropping single day percentage gains in the Dow Jones Industrial Average (DJIA):

Each of these spikes followed serious downturns, proving that the market loves a comeback story…at least for a day.

What Triggered These Market Surges?

These weren’t just random lucky days. There was always a catalyst behind the turnaround.

The Great Depression Bounces (1930s)

The early 1930s were a roller coaster for the stock market. Some of the biggest one-day gains happened during the Great Depression, but most were just temporary recoveries in a longer downtrend.

March 15, 1933 (+15.34%) – This is still the biggest single-day percentage gain in Dow history. After President Franklin D. Roosevelt shut down banks for a “holiday” and then reassured the public that they were stable, investors saw hope. The market soared.

October 6, 1931 (+14.87%) – The UK ditched the gold standard, a move that suggested governments were taking bold steps to fix the financial mess.

The 1929 Crash & Dead Cat Bounce

October 30, 1929 (+12.34%) – This came right after the infamous Black Tuesday crash when the Dow had just lost nearly 25% in two days. Investors thought stocks had hit rock bottom. Spoiler alert…they hadn’t.

The COVID-19 Market Swings (2020)

The early days of COVID-19 were some of the most volatile in stock market history. Stocks plummeted, then roared back in dramatic fashion.

March 24, 2020 (+11.37%) – The Dow had been tanking as the world shut down, but news of a massive $2 trillion economic stimulus package from the U.S. government flipped the switch. Suddenly, there was hope that the economy wouldn’t completely collapse.

April 6, 2020 (+7.73%) – Some good news about slowing infection rates and potential economic re-openings pushed the market even higher.

These were wild days where 10% swings in either direction felt almost normal.

Did These Gains Actually Stick?

The million dollar question: Did these huge rallies last? Sometimes yes, sometimes no.

The Next Day Market Reaction

• 1929 Dead Cat Bounce? Yep. The October 30, 1929 rally didn’t last. The market kept falling, and the Great Depression dragged on for years.
• The 1933 Relief Rally Had Staying Power. After March 15, 1933, stocks did keep climbing as Roosevelt rolled out the New Deal.
• The COVID-19 Recovery Was a Game Changer. Unlike the Great Depression, the March 2020 surge actually marked the beginning of a long bull run. Stocks hit new highs later that year.

Long Term Takeaways

• Big one-day gains usually follow massive crashes. Market panic creates opportunities for sharp rebounds.
• Government action matters. Many of these rallies were triggered by policy changes, stimulus packages, or big economic moves.
• Not all recoveries are real. Some were just temporary bounces in an ongoing bear market, while others (like 2020’s) signaled the start of a new uptrend.

Final Thoughts

The stock market has a way of surprising everyone. One day it’s crashing, the next it’s soaring. The biggest one-day gains in history happened when things looked the worst, proving that markets are emotional and unpredictable.

While government interventions can have positive short-term effects (for those who own stocks) there are always going to be long-term effects…many of which should’ve be foreseen. There’s a solid economic argument the Roosevelt’s interventions and the New Deal actually extended the Great Depression and had lasting negative economic impacts for decades. The COVID-19 stimulus packages were funded by increasing the US money supply in a massive fashion, leading to fairly brutal inflation that sill lingers today.

In addition negative long-term economic impacts, one has to also think about the moral implications of government interventions. Banks, big businesses, land owners, and other wealthy people benefit at a far greater rate than middle class and impoverished people do. Inflation has a far greater negative effect on the working class people than the wealthy.

//www.wsj.com/articles/SB123353276749137485

//www.historynewsnetwork.org/article/fdrs-policies-prolonged-depression-by-7-years-ucla

//fee.org/articles/fdrs-folly-how-roosevelt-and-his-new-deal-prolonged-the-great-depression/

So, what’s the lesson here?

If you’re investing for the long term, these short term swings don’t matter as much. But if you’re a trader, these kinds of wild rebounds can be the chance of a lifetime.

If you look to the government for help during a crisis…be careful what you wish for!