Dow on track to avoid longest slump since 1978

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The Dow is on pace to avoid suffering its longest slump since Jimmy Carter was in the White House.

After eight days in a row of selling, the Dow jumped more than 150 points Tuesday afternoon. That would be more than enough to end the index’s longest losing streak since 2011.

The Dow hasn’t closed down eight-straight days since February 1978, according to historical data from FactSet.

The Trump rally came under siege in recent days as investors worried that the president’s stunning failure to repeal and replace Obamacare will make it harder for him to push through tax reform and the rest of his pro-business agenda.

But those concerns went on the back burner on Tuesday.

U.S. stocks received a boost after a new report from the Conference Board showed that consumer confidence surged in March to the highest level since December 2000.

While the survey took place before the health care vote was scrapped, it mirrors a string of other metrics that have turned more optimistic since the end of the election.

“It’s certainly encouraging to see a bulled up consumer as they are of course a key part of the U.S. growth equation,” Peter Boockvar, chief market analyst at The Lindsey Group, wrote in a note to clients.

Before Tuesday, Wall Street displayed nerves about the fate of Trump’s promise for a sweeping reform of the corporate tax code and “massive” tax cuts. Republican infighting exposed by the health care debacle could delay or water down the complex tax efforts.

“The perception, right or wrong, is that the new administration has been greatly weakened by the implosion,” Ed Yardeni, president of investment advisory Yardeni Research, wrote in a report to clients.

Related: Trump rally in jeopardy after health care debacle

There’s also concern about Trump’s ability to deliver on his promise to slash regulation, especially on banks. Shares of big banks like Morgan Stanley and Goldman Sachs gave back some of their post-election gains in recent days before rebounding on Tuesday.

“The market was pricing in perfection. Now it’s come to realize that the size, shape and timing of fiscal policy is less than perfect,” said Michael Arone, chief investment strategist at State Street Global Advisors.

It’s important to note that the Dow remains up 11% since the election and the eight-day losing streak only knocked it down by about 1.6%. By comparison, the August 2011 stumble wiped 7% of value from the Dow.

CNNMoney’s Fear & Greed Index briefly flipped to “extreme fear” on Monday but it has since improved to “fear” amid the market rebound.

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