Wall Street analysts see S&P 500 rebound as false signal of market growth

Bloomberg reports that Wall Street experts are concerned about the short-lived nature of the recent S&P 500 surge. The index jumped by more than 2% after US Treasury Secretary Scott Bessent's statement regarding the likely easing of trade tensions with China. However, the index lost part of this gain in the second half of the day.

Strategists polled by Bloomberg say it is difficult now to predict market movements. Although the S&P 500 index has not yet fallen 20% from its all-time high—a characteristic of a "bearish" trend—it is already approaching this threshold. It is currently correcting with a loss of over 14% from its February peak.

Michael Kantrowitz, a strategist at Piper Sandler & Co., says that in the near term, the S&P 500's upside opportunities are limited. He attributes this to trade tariffs and high uncertainty, neither of which is likely to be resolved soon.

The expert anticipates some rebounds in the index, but he finds it challenging to call a bottom now. In such conditions, long-term investors hesitate to either sell or buy, Kantrowitz added.