#MarketRebound
đ Broad U.S. Equity Recovery
The S&P 500 is nearing its all-time high (~6,144.15) after recovering sharply from April's dip, now hovering around 6,020. The rebound has been fueled by strong May jobs data and improving sentiment in U.S.âChina trade relations. However, analysts caution that stretched valuations and persistent macro risks could limit further gains .
Institutional investors ("Big Money") have re-entered U.S. stock markets, pushing the S&P 500 within ~2.3% of its record high. This inflow could signal a potential âmelt-upââa rapid surge fueled by fear-of-missing-outâalthough high valuation multiples may pose a ceiling .
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đ SmallâCap & SectorâSpecific Momentum
Small-cap stocks (Russell 2000) may be positioned for a revival in June. Historically, underperforming small-caps see strong seasonal rebalances, aided by attractive valuations (~11% below norm), potential Fed rate cuts, and increased M&A, especially in healthcare .
Morgan Stanley highlights rebounding earnings revisions and a weaker U.S. dollar as key tailwinds. The bank forecasts the S&P 500 could rise to ~6,500 within 12 monthsâabout 8% higherâif current trends persist .
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đ Global & Macro Drivers
ECBâs rate cutsâmarking its eighth cut in just over a yearâhelped spark a rally in European equities (e.g., STOXX 600), which has, in turn, supported global market sentiment. German industrial strength and dovish tone further reinforced the rebound .
U.S. labor data: A strong jobs report (+139K in non-farm payrolls) pushed stocks higher and lowered recession fears. Treasury yields rose, reflecting diminished safe-haven demand, and the Russell 2000 led with a +3.2% gain .