The U.S. stock market recently achieved historic gains, with the Nasdaq closing 12% higher and the S&P 500 climbing nearly 10%. This surge is reminiscent of previous bear market rallies seen in 2001 and 2008, during which significant market increases occurred before downturns. Current conditions show high volatility, with the VIX (Volatility Index) experiencing a historic drop. Analysts speculate that President Trump's decision to pause tariffs has influenced these market movements, although bond market pressures—initially thought to stem from China—are now linked to Japan. Despite the apparent bullish market signals, the historical context raises concerns about the sustainability of this rally, as it could precede further declines similar to past financial crises. Investors are urged to remain cautious, recognizing the potential for bear market rallies. Bitcoin also experienced a temporary spike, crossing $82,000, but continues to follow a downward trajectory since January.

Source 🔗