The Stock Market Just Had Its Best Week Since 2020. Enjoy It While It Lasts.

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It was the largest weekly gain for all three major U.S. indexes since November 2020.

Michael Nagle/Bloomberg

Drop a ball off a balcony, and it will bounce. Drop the market off an all-time high and it eventually will, too. That doesn’t make it a buying opportunity.

We’ve been waiting a while for a week like this. The

S&P 500
rose 6.2%, while the

Dow Jones Industrial Average
gained 5.5% and the

Nasdaq Composite
jumped 8.2%. It was the largest weekly gain for all three indexes since November 2020.

These days, bad situations not getting worse count as good news. The Federal Reserve raised interest rates by a quarter of a percentage point, but at least it wasn’t a half-point hike, and the Fed didn’t start winding down its balance sheet, either. Russia’s invasion of Ukraine slogged on, but the fact that the two adversaries were talking seemed to lift investor spirits. Even China recognized that the panic in Chinese stocks was getting out of hand.

With that, what had been bad became good—and the worse it was, the better.

Alibaba Group Holding

(ticker: BABA),


(BIDU), and

(JD) soared 25%, 25%, and 36%, respectively, this past week, after losing more than a quarter of their values this year through March 14. The

ARK Innovation
exchange-traded fund (ARKK) jumped 18% after dropping 44% to start off the year, as


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