#MarketRebound

📈 Market Landscape

• QQQ has rallied to $534.15, up roughly +0.65% intraday, fueled by tech strength and easing trade tensions.

• SPY trades near $602.96, reflecting a +0.55% intraday gain, following broader market optimism.

🌟 Key Drivers Behind the Rebound

1. Economic & Trade Optimism

• A surprisingly strong May jobs report (139K new jobs) and positive signs from U.S.–China trade talks have lifted investor sentiment .

• Commerce Secretary Lutnick called discussions “really, really well,” helping boost equities .

2. Institutional Buying & Risk Appetite

• Bank of America reports clients have bought equities in 25 of the last 26 weeks — a record streak .

• Institutional “big money” is positively tilted toward the market, causing some to wonder if this is a “melt-up” scenario .

3. Tech-Led Rebound

• Mega-cap tech and semiconductor stocks have spearheaded the recovery, with chip stocks especially benefiting from improved export outlooks .

• The Nasdaq Composite, along with the S&P, has bounced back strongly from April’s sharp downturn .

⚠️ A Cautionary Note

• Despite the rebound, the S&P 500 still sits just ~2% shy of its all-time high (~6,144) and broad appreciation may slow due to high valuations and mixed earnings forecasts .

• Analysts warn that trade uncertainty, upcoming inflation data, and stretched market multiples could trigger setbacks .

🔭 Outlook & Watchpoints

• Next catalyst: U.S. CPI/PPI inflation data—likely pivotal for Fed interest-rate expectations.

• Tech flow: Sustained strength in semiconductors or mega-cap tech could spark further gains in Nasdaq/QQQ.

• Valuation vs. momentum: A delicate balance—strong headlines may support momentum, but valuations could cap upside.