Markets Rebound $206 billion

What a week it’s been.

After several days of sharp declines and unsettling headlines, we’ve seen a powerful rebound overnight—with the Australian share market set to jump 6.6%, recovering around $206 billion in value. That’s right—$206 billion added back into Aussie markets in just one session. Recovering 75% of the loses occurred over the past week.

But if you’ve only been following the news, you might have missed that. That’s because while the media loves to shout about market falls in billions, they tend to report gains quietly—as just small percentage increases. Fear sells, and it’s been loud this week.

So let’s cut through the noise and explain what’s really going on—calmly and clearly.

What Triggered the Rebound?

Overnight, President Trump agreed to pause all new tariffs for 90 days to allow for negotiation with more than 75 countries. This came after intense pressure from markets and global leaders, and it has cooled investor nerves for now.

Markets reacted swiftly:

The US stock market surged 9.2%—its best day in five years.
Early signs suggest Australian shares will follow, jumping 6.6%.
Even China’s market bounced back after heavy selling earlier in the week.

It’s what we often call a “buy-the-dip” moment. And to those of you who acted during the recent falls and added to your investments—well done. You’ve taken advantage of market conditions that others may have panicked over.

But Are We Out of the Woods Yet?

No—not just yet.

“Let’s not kid ourselves—volatility is going to stick around as long as uncertainty does,” says Matt McCabe, Principal Financial Planner at Newcastle Advisors.
“The global trade war may have paused, but it hasn’t ended.”

There’s still tension between the US and China, and more changes could come quickly. So while this rebound is encouraging, we must stay realistic and focused on long-term goals.

A Bit About the VIX – The ‘Fear Gauge’

The VIX is a tool that measures how volatile markets feel. It’s currently sitting around 45, which is high—but still well below the extreme fear levels we saw during COVID (80) or the Global Financial Crisis.

So while markets are jumpy, we’re not in full panic mode.

“We’re seeing increased volatility, but not chaos,” says McCabe.
“That means we stay the course, stick to the plan, and keep a long-term mindset.”

A Timeless Reminder: Time In the Market > Timing the Market

Over the years, we’ve seen many short-term dips—COVID, the GFC, trade wars, inflation scares. And yet, long-term investors who stayed the course have consistently come out ahead.

Making decisions based on headlines or fear can lead to crystallising losses, missing rebounds like the one we’ve just seen, and falling behind.

If You’re Feeling Anxious, Let’s Talk

At Newcastle Advisors, your financial plan has been built to weather storms like this. But if you’ve felt nervous, or want to revisit your strategy, you don’t have to go it alone.

Let’s have a conversation—whether it’s to answer your questions, adjust your approach, or simply remind you of the bigger picture.

Matt McCabe
Principal Financial Planner
Newcastle Advisors
📍 Newcastle & Lake Macquarie

Markets Rebound $206 Billion