Analysts express skepticism on sustainability of S&P 500's recent rally amid tariff pauses

Analysts are cautious about the S&P 500's recent rally, which surged 5.3% this week following a 90-day tariff pause by President Trump.
Despite this rebound, concerns linger over the sustainability of the rally amid ongoing trade tensions.

The S&P 500, which had previously dropped 12% in early April, is now just 3% below its record high set in mid-February.
While U.S. companies have reported profits exceeding expectations, many are uncertain about future conditions.

Michael Brown, senior research strategist at Pepperstone, noted that recent U.S.-China talks have eased trade tensions, but analysts warn that the stock rally remains fragile.

Trump's tariff pause, while significant, does not eliminate the risk of future tariffs, with administration officials indicating a baseline of 10%.

The market's recent performance has been marked by volatility, with investors looking past disappointing consumer sentiment data and inflation concerns.
The University of Michigan's consumer sentiment index fell to 50.8, the second-lowest reading on record.

Analysts are expressing skepticism about the sustainability of the S&P 500's recent rally, which saw a 5.3% increase this week, following a 90-day tariff pause announced by President Trump. Concerns remain over ongoing trade tensions and the potential fragility of the stock market's recovery.