Wall Street pros are sounding a warning to investors as the stock market rebounds from recent declines. The S&P 500 Index has risen over 2% on news that the US-China trade war is set to de-escalate, but the gains came back after the afternoon session.
Experts say this could be a “headfake” – a temporary rebound that may not last long. Joe Saluzzi, co-manager of trading at Themis Trading, compares it to the classic cartoon gag where Charlie Brown falls for Lucy’s kick.
The market is currently in a correction, having lost over 14% from its peak on February 19. A bear market would require the index to close down 20% from its record high.
Michael O’Rourke, chief market strategist at JonesTrading, warns that this is “bear market activity.” He says substantial swings are not usual in these periods and it’s hard to call a bottom until more clarity comes.
The S&P 500 has lost 6.3% in April so far, making it on track for its worst month since 2022. Investors may be hesitant to buy due to the ongoing uncertainty and high tariffs.
However, Wall Street experts believe that eventually, investors will put their money into the market once again. They say that sharp moves can occur quickly, often within a handful of days, and those who have been patient and disciplined may be ready to take advantage of these opportunities.
Source: https://finance.yahoo.com/news/p-500-bounce-traders-fearing-190406477.html