U.S. stocks rallied on Thursday in the latest sharp shift on Wall Street after a better-than-expected unemployment report eased concerns about an economic slowdown.

The S&P 500 jumped 2.3% on its best day since 2022, paring all but 0.5% of its loss from a brutal start to the week. The Dow Jones Industrial Average rose 683 points, or 1.8%, and the Nasdaq Composite climbed 2.9%, with Nvidia and other big tech stocks leading the way.

US Treasury yields also rose in the bond market, a sign that investors are less worried about the economy after a report showed that fewer US workers filed for unemployment benefits last week, a figure better than economists had expected.

Exactly a week ago, worse-than-expected unemployment data fueled concerns that the Federal Reserve had kept interest rates too high for too long to fight inflation. That sent markets around the world reeling, as did a rate hike by the Bank of Japan that sent shockwaves around the world and disrupted a popular trade for some hedge funds.

At its worst, at least so far, the S&P 500 was nearly 10 percent below its all-time high last month. Such slumps are not uncommon on Wall Street, and corrections of 10 percent occur about every one to two years. After Thursday’s jump, the index is now about 6 percent below its record high.

What made this decline particularly scary was how quickly it happened. A measure of how much investors are paying to protect themselves against future declines in the S&P 500 briefly rose to its highest level since the COVID crash of 2020.

Still, according to strategists at BNP Paribas, the market swings are more akin to a “positioning-induced crash” caused by too many investors entering similar trades and then exiting them together, rather than the start of a long-term downmarket following a recession.