The S&P 500 has rebounded sharply following trade tension relief, driven by unexpected tariff reductions and upbeat sentiments from President Trump. However, Sevens Report warns this surge may not sustain as anticipated.

Reasons for Optimism

• Tariff Cuts: The agreement to lower rates eases trade war fears and creates market optimism.
• Trump’s Positive Outlook: His affirmations on international talks have increased risk appetite.

Possible Challenges Ahead

• Tariffs Still High: Duty rates remain above prior levels, signaling ongoing cost pressures.
• Policy Risks: Trade negotiations continue to pose risks, with no guarantees of resolution.

Investors should prepare for volatility as fresh catalysts may be necessary to continue this upward trend.