- S & P 500 is only less than 3 % lower than the record It is in mid -February, when President Donald Trump launched a trade war that started with Canada and Mexico. This puts the index around the bull market area and represents an amazing recovery for only one month, as the markets were shattered after Trump revealed a “liberation day” tariff.
American stocks are already located at a higher distance of standard levels-just one month after the destruction of the “Tahrir Day” definitions that was expected by President Donald Trump.
S&P 500 is 3 % decreased in mid -February, when Trump launched a global trade war that started definitions of Canada and Mexico.
This represents an amazing recovery from last month, where the index in the bear market was flirted with almost 20 % sale. Now, it is around the bull market area again. From its closure decreased in early April, the S&P 500 increased by almost 20 %. From the lowest level of the day, more than 20 % rose.
At the same time, and Dao Industrial average Jones shy 5 % of its highest level ever, Nasdak It is turned off by 4.9 %, and small Russell 2000 is 14 % less.
After the markets were initially shocked with its high tariff, including 145 % in China, the Trump administration temporarily stopped some of its most aggressive duties while participating in talks with senior trading partners.
Friday, reports The American Union and the European Union began serious negotiations The markets gave an elevator after the gathering earlier this month Trump’s escalation with China A commercial deal with Great Britain.
but Reducing Moody to classify American credit On Friday evening, it was a reminder of the threat that the high levels of debt in the long run, especially if the bond market dealers wandering in the cabinet higher and sinking the stock market.
Currently, the market increase may not slow down. Many Wall Street analysts said that Moody’s indicated only What investors already know About the rapidly deteriorating financial situation and followed similar moves from Fitch in 2023 and Standard & Poor’s in 2011.
Immediately before reducing debts, some veterans in the market were optimistic that stocks could continue to achieve more gains.
“I became more upward. I call it” Trump Axis, “Jeremy will get off from the Warton School Tell CNBC on Friday afternoonReferring to the cessation of customs tariffs.
Although he estimated that stocks will be 10 % higher without Trump’s tariff, the market still has “many positive things that are going on”, such as inflation readings better than fear and Trump’s connection to the Middle East.
“I think this market may surprise everyone by hitting new levels of levels,” Sidal foretold.
Fundstrat Global Adviss Tom Lee was optimistic, referring to a better introductory vision as well as the possibility of tax cuts, the abolition of restrictions, and more mitigation of the federal reserve in 2026.
He added that at the same time, the companies “from the Black Swan event” survived and managed to overcome profit expectations in their recent reports.
“When you think about 2026, the bullish -direction profits, I think there is still part of the stocks,” He told cnbc Friday afternoon.
Michael Brown, chief research strategy in Peppperstone, said on Wednesday that the United States of China is speaking at the end of last week, which produced a significant mitigation of commercial tensions that strengthened the idea that the markets have exceeded the height of uncertainty in customs tariffs.
“Add all of this together, spray the best clear progress in the draft law on the Republican Party Tax Discounts in the House of Representatives, and to increase the belief that the debt ceiling will be resolved in time, and mentally where (at least at the present time) investors will search through bad data as deviant definitions that no longer exist, and you have a very strong cocktails to send stocks upward,” he wrote in the observation. “The 6000 handle will be the first test (S&P 500), and it is certain that new standard levels can not be excluded shortly after.”
Certainly there are still skeptical in Wall Street, warning that brittle arrows will be gathered.
While Trump has stopped his biggest tariff, it is unlikely to disappear completely, and administration officials indicated that 10 % is a basic line – which increases historical levels. Later in the year, economic data and companies’ profits will appear more signs that customs tariffs have an impact.
The profit momentum will fade, and even wonderful technology giants will witness slow growth growth, according to Lisa Shalit, the chief investment official in the wealth management department in Morgan Stanley.
“I think we will be broken here,” she Bloomberg said Friday. “It is difficult to justify the numbers.”
This story was originally shown on Fortune.com
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