Wall Street Rises Amid Trade Tensions, but Momentum Concerns Loom

U.S. equities advanced Monday, with the S&P 500 climbing 0.4% to 5,935.94 and the Nasdaq Composite jumping 0.7% to 19,242.61. The Dow Jones Industrial Average edged up 0.08% to 42,305.48, officially entering bull market territory—a 20% rally from its recent low. The gains came despite heightened trade friction following new tariff announcements from the TRUMP administration.

Optimism faded by Tuesday morning as futures turned lower. S&P 500 futures dropped 0.39%, Dow futures fell 159 points, and Nasdaq 100 futures slipped 0.37%. JPMorgan strategist Mislav Matejka warned that the April rally was driven by technical factors like short covering rather than fundamentals, noting stretched valuations and fading momentum.

Market participants now face a potential slowdown in economic growth and rising consumer prices, which could test the durability of recent gains. "Positioning is not cautious anymore," Matejka observed, suggesting future returns will depend on actual economic performance rather than speculative forces.