#MarketRebound

Institutional investor bullishness

“Big Money” is pouring back into equities, with the S&P 500 rebounding to 6,000.36—just ~2.3% shy of its February peak. However, high valuations (SPX trading at ~22.7× forward earnings) show caution may be warranted .

• Earnings revisions improving

Morgan Stanley notes a shift: downward earnings revisions have narrowed from –25% in April to –10% now. Historically, that’s paved the way for ~13% annual returns in the S&P for the next 12 months—with a target of 6,500 .

• Softening trade tensions & jobs data

Easing tariff pressures and optimism over U.S.–China talks, combined with a modestly stronger-than-expected May jobs report (+139k non-farm payrolls), have reassured investors  .