#MarketRebound

**#MarketRebound: Key Drivers and Outlook**

The U.S. stock market has rebounded sharply since April 2025, erasing losses triggered by trade tensions and recession fears. The S&P 500 surged ~18% from its April lows, fueled by easing tariff concerns, strong corporate earnings, and resilient economic data . However, risks remain:

1. **Tariff Uncertainty** – Lingering trade tensions could reignite volatility .

2. **Valuation Concerns** – The S&P 500’s P/E ratio (~21) is above historical averages, raising sustainability questions .

3. **Sector Rotation** – While tech (e.g., Magnificent Seven) led the rebound, some investors see value in industrials, financials, and international markets .

Analysts debate whether this rally marks a sustained recovery or a temporary reprieve . Diversification remains key amid potential turbulence .

(DYOR)