There are three core drivers behind the shift in sentiment
There are three core drivers behind the shift in sentiment: Sevens Report Analysts Quoted in Investing.com
Here are 3 key reasons why markets are rallying
According to the Sevens Report, there are three core drivers behind the shift in sentiment, even as some analysts remain skeptical about the sustainability of the surge.
“In the past month, the S&P 500 has surged basically 10%, the VIX has dropped from 30 to 18 and sentiment indicators have swung more bullish,” Sevens wrote.
“Tariff levels aren’t enough to derail the economy,” Sevens said. Despite isolated price increases, like a 40% jump in the price of a Barbie at Target, Sevens notes that “if tariffs rates are 10%,” and cost absorption is split among supply chain players, the consumer burden remains limited.
“Once that’s obvious, the Fed will cut rates and further support stocks,” wrote the firm.
“However, I do think they’re aggressive right now and as such, I continue to think that while short-term momentum is bullish, chasing stocks here remains an unattractive risk/reward proposition.”
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