Wall Street staged a remarkable recovery last week, with stocks rebounding sharply to erase all losses from April’s trade shock. The rally was fueled by hopes of soon-inking trade deals by the White House. However, despite the relief, warning signs are emerging in the financial ecosystem for high-risk traders like hedge funds and day traders. Billion-dollar bond sales and speculative assets, including crypto and unprofitable tech companies, have surged. This raises questions about whether investors are taking on too much risk as they look forward to potential trade deals.
Source: https://www.bloomberg.com/news/articles/2025-05-02/in-wall-street-s-epic-comeback-unsolved-market-mysteries-abound