When markets tumble, panic is easy. But as last week’s unexpected stock rally reminds investors, staying the course often delivers real rewards.

The stock market surged nearly 3% last week, trimming year-to-date losses to just 3.1%. Not long ago, markets were down almost 19% from February highs, leaving many investors rattled. Now, thanks to strong economic data and easing trade tensions, the tide has turned.

Economic fundamentals drive the market over the long term. Last week’s rally was fueled by better-than-expected GDP data and a healthy jobs report — two signs that the economy remains resilient.

Gross domestic product (GDP), the broadest measure of economic activity, dipped by just 0.3% in the first quarter of 2025. At first glance, that sounds alarming. However, a deeper look shows that surging imports — up 41.3% — dragged the headline number lower. Since imports subtract from GDP calculations, the real story is much stronger beneath the surface.

Consumer spending, business investment, and exports all increased. Together, these areas signal ongoing economic strength despite global uncertainties.

The job market remains a pillar of strength

The April jobs report added to the positive momentum. Employers added more jobs than economists expected, and the unemployment rate held steady. Wage growth remained healthy, suggesting that consumers still have spending power to support the economy.

These signs of a strong labor market often translate into sustained market confidence — and help explain the recent rally.

This spring’s rollercoaster market proves a crucial point: timing the market is nearly impossible.

Investors who continued dollar-cost averaging — investing consistent amounts at regular intervals — are now seeing their patience pay off. By removing emotion from investment decisions and sticking to a steady plan, they were positioned to benefit when the market rebounded.

Key takeaway: Trying to guess market bottoms often results in missed opportunities. Staying consistent builds wealth over the long run.

One powerful way to stick with a plan? Set up recurring investments. These automatic contributions help smooth out the highs and lows by investing at regular intervals — whether markets are soaring or sinking.

Setting up recurring daily, weekly, or monthly contributions keeps money working toward your goals without the stress of timing market moves.

• Stay diversified. A well-balanced portfolio cushions against sector-specific risks.
• Focus on the long term. Short-term swings are normal; your strategy should be built around years, not weeks.
• Review, but don’t overreact. Check your investments periodically, but avoid making changes based on headlines.
• Use downturns as opportunities. Lower stock prices can be a chance to buy more shares at a discount.

Historically, the stock market has always recovered from downturns — whether driven by financial crises, pandemics, or policy changes. Patience and discipline consistently reward investors willing to weather temporary storms.

As the latest rally shows, market recoveries can happen faster than expected. Staying invested helps ensure you’re ready when they do.