S&P 500 Rebounds Beyond Prewar Levels as Investors Question Market Sustainability

Tue, 14 Apr 2026 21:10:00 +0200

The Wall Street Journal article discusses how the S&P 500 has climbed back above the levels it held before geopolitical tensions escalated, marking a significant rebound for U.S. equities. Analysts attribute the rally to investor optimism fueled by stabilizing commodity prices, easing inflation concerns, and expectations that the Federal Reserve will keep interest rates steady for the next several months. Corporate earnings have also exceeded forecasts across several key sectors, including technology, healthcare, and consumer goods, contributing to the broader market recovery. However, the piece highlights that not all experts believe the rally will last. Some strategists warn that geopolitical uncertainties, particularly those related to energy supply disruptions and military spending pressures, could create renewed volatility. Others suggest that valuations are becoming stretched, with the S&P 500 trading at a higher forward price-to-earnings ratio than historic averages. Despite the