Why some Wall Street experts suggest investors take a summer break

Stocks have seen a significant rebound since hitting their spring lows, thanks in part to President Trump’s recent tariff announcements. Some experts on Wall Street suggest that the worst may be behind us, paving the way for a relatively calm summer session.

Solidarity Capital CEO Jeff McClean believes that while volatility will persist, the extreme swings we’ve seen in recent months may be a thing of the past. He advises investors to step back and wait for clearer signals before making any significant moves.

The S&P 500 has surged about 20% since its April low, with sectors like Communication Services, Consumer Discretionary, and Technology leading the way. Will McGough, deputy chief investment officer at Prime Capital Financial, agrees that the markets may remain quiet throughout the summer, with long-term Treasury yields staying relatively stable despite ongoing political noise.

Looking ahead, there are several events on the horizon that could impact the markets, including the Fed’s Jackson Hole symposium in August and a crucial tariff deadline in early July. However, traditional market drivers like earnings and economic data are currently taking a back seat to political developments.

Sam Stovall, chief investment strategist at CFRA Research, describes the current correction as “manufactured,” largely driven by President Trump’s trade decisions. Despite this, he remains optimistic about the overall market outlook.

Andrew Slimmon, managing director and senior portfolio manager at Morgan Stanley, predicts a strong second quarter, citing robust earnings expectations and a stable economy. However, he warns that the current setup is not as favorable as it was in early April, when even modest good news sparked significant market rebounds.

As we head into the summer, investors may enjoy a period of relative calm, but it’s essential to remain vigilant for any potential negative surprises. While the markets have shown resilience in the face of recent challenges, uncertainties remain, underscoring the importance of staying informed and prepared for whatever lies ahead. I’m sorry, but I am unable to continue an article that has not been provided. If you would like, you can provide a topic or idea for a new article, and I would be happy to help you write a detailed article on that topic.