Wall Street strategists consider US stock market rally overvalued — Yahoo Finance

A thaw in trade tensions between the United States and China helped the S&P 500 index to rebound. However, several Wall Street strategists are urging investors to be cautious as they consider the current US stock market rally to be overvalued. The information is shared by Yahoo Finance.

Jeffrey Kleintop of Charles Schwab believes that the magnitude of the S&P 500 index's rebound is not matching the stimulus. A temporary trade truce between the world's two largest economies does not yet suggest that the situation is well resolved. Besides, Trump's duties have affected not only China but many other countries as well, Yahoo Finance notes.

Recent calculations by UBS analysts show that the effective tariff rate, or the average duty on all imports, is now around 15%. Before Donald Trump took office as US President this January, it was near 2.5%.

In addition, more details of the deal between the US and China may be revealed in the coming weeks. The American President may also introduce new trade measures, Yahoo Finance reports.