While pundits across the political spectrum have weighed in on recent swings across the markets, it is worth noting that these swings will no doubt lead to a higher need for in-court and out-of-court restructurings.
Companies in distress usually do not have the option to "buy and hold" until the storm passes.
The automatic stay freezes (at least as a matter of law) the status quo of a company, which can create the opportunity to mitigate downside risk from the broader market.
U.S. stocks rocketed higher Wednesday after President Trump announced that he had authorized a 90-day pause on certain tariffs to most countries. The about-face in the expanding trade war jolted investors who had previously been fleeing for the sidelines. The tech-heavy Nasdaq roared ahead 12%, its best day in 24 years. The S&P 500 added 9.5% in its biggest gain since 2008, while the Dow Jones Industrial Average moved ahead 7.9%, its biggest day since 2020. The 2,963-point rally in the blue-chip index was its largest point gain on record, according to Dow Jones Market Data.
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