The S&P 500’s recent rebound has drawn positive reactions from major Wall Street firms, with Morgan Stanley and JPMorgan Chase both expressing confidence that the recent correction may be nearing its end.
Morgan Stanley’s strategist, Michael Wilson, said the market’s recovery from its recent decline – about 7% off – is holding at key technical support levels, suggesting that inflation may have begun.
Wilson pointed to stronger-than-expected earnings growth, which is now tracking at around 15% in current reports and is expected to rise more than 20% further, as evidence that the shares are still sitting on a sound fundamental footing. His team advises clients to buy market dips, focus on cyclical sectors and quality growth stocks while reducing exposure to energy, which he said is likely to peak following its early-year rally.
JPMorgan also urged investors to treat the retreat as a buying opportunity. Strategist Mislav Matejka said conditions favor another V-shaped recovery in the next three to twelve months.
Although volatility is still possible amid the country’s uncertainty, Matejka sees investor sentiment and market conditions as overextended and expects new inflows to stabilize risk assets. JPMorgan projects strong performance in international markets, emerging economies, small caps, and value sectors as global growth stabilizes.
Bitcoin continues to break above $72,000
Although equity analysts are experiencing renewed optimism, Bitcoin continues to stand near its upper range. Data from Glassnode shows heavy profit-taking each time prices approach $70,000 to $80,000, with more than $20 million of BTC traded every hour during recent rallies.
Bitcoin briefly rose near $74,000 over the weekend before retreating back below $71,000 as tensions between the US and Iran pushed oil higher and weighed on American futures.
Over the weekend, US and Iranian talks in Islamabad collapsed without an agreement, leading the Trump administration to escalate tensions by announcing a blockade of the Strait of Hormuz and other maritime law enforcement measures amid regional tensions and warnings of a wider military and economic collapse.
Investor behavior, not chart resistance, is holding the momentum as owners use leverage to exit positions. Until supply pressure eases, Bitcoin’s ceiling will remain firmly within its current distribution band.
Earlier today, Strategy bought 13,927 BTC for almost $1 billion, increasing its total value to 780,897 BTC, with the purchase fully funded by funds from its STRC program in the market.
The company’s continued accumulation runs counter to broader business trends, as many firms reduce Bitcoin exposure while Strategy remains a dominant institutional buyer.
Editorial disclaimer: We use AI as part of our editorial workflow, including supporting research, image production, and quality assurance processes. All content is moderated, reviewed, and approved by our editorial team, which is responsible for accuracy and integrity. AI-generated images only use tools trained on properly licensed materials. In Bitcoin, as in the media: Don’t trust. Confirm.
