$SPDR S&P 500 ETF Trust(SPY)$ $S&P 500(.SPX)$ Sure, the market bounced—but is it sustainable? Trump’s friendlier tone may have calmed nerves temporarily, but this could easily be a sugar rush, not a structural recovery.
Here’s the case for caution:
Volatility Still High: Markets are reacting sharply to every headline. That’s not a sign of confidence—it’s a sign of uncertainty.
Resistance Ahead: The S&P 500 has stalled near 5500 before. Without a strong catalyst, it may hit that wall again.
Bigger Picture Risks: Inflation isn’t fully tamed, rate cuts remain a question mark, and geopolitical risks still linger. One speech won’t erase those issues.
Until we see follow-through with strong volume and fundamental support, this rally could fizzle just as fast as it started.
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