#MarketRebound U.S. markets are rebounding, with the S&P 500 nearing its February record high of 6,144.15, closing at 6,038.81—just 1.7% below the peak. Investor optimism is fueled by progress in U.S.-China trade talks and strong May job reports. The Nasdaq and Dow Jones also posted gains, supported by tech sector strength and easing tariff concerns. [1][2]

Small-cap stocks, previously underperforming, are showing signs of recovery. Analysts attribute this to attractive valuations, potential Fed rate cuts, and seasonal factors favoring small-cap performance in June. [3]

However, caution is advised. High stock valuations, ongoing trade uncertainties, and weakening corporate earnings projections pose risks. The upcoming consumer price index report is anticipated to show mild inflation increases, which could influence market momentum. [1]

Overall, while the market's trajectory is positive, strategists recommend vigilance amid economic and geopolitical uncertainties.