U.S. stocks have recovered 90% of the decline since April 2nd
After experiencing a surge overnight, the Nasdaq is now less than 2% away from its level on April 2. Goldman Sachs analyst Lee Coppersmith pointed out that the market has cleared many bullish technical factors. JP Morgan stated that despite a 90-day pause, macro policies remain uncertain, and issues regarding the China-U.S. trade war and industry tariffs are still unresolved. The news from Washington and the bank earnings conference calls in the next two days will be crucial for assessing market trends
After an overnight surge, the Nasdaq is now less than 2% away from the level of "April 2nd."
Following this battle, Goldman Sachs' Lee Coppersmith stated, "We have basically cleared a lot of bullish technical factors (+ VIX reset from over 50 to just above 30)." However, considering the scale of net short positions held by hedge funds, it is certain that a significant amount of capital will continue to chase performance in the future.
JP Morgan believes that, from a fundamental perspective, despite a 90-day pause, macro policies remain uncertain and are influenced by the outcomes of negotiations. The US-China trade war has further escalated, and industry tariffs (pharmaceuticals and semiconductors) are still pending. The headlines from Washington over the next two days, along with bank earnings call (focusing on consumer trends and macro outlook), will be crucial for assessing recent market trends.
