Trade Thaw and Fed Tensions Drive Momentum
Last week, the S&P 500 rose as easing trade tensions and a temporary truce in U.S. political disputes lifted investor sentiment. Sevens Report highlighted four primary catalysts:

U.S.-China trade war de-escalation

Softening of the Trump-Powell feud

Anticipation of new trade deal announcements

Strong Q1 earnings

With industrial and tech names leading the charge, real-time top gainers—revealed through the Market Biggest Gainers API—show which stocks are at the forefront of this advance. However, Sevens Report warns that “none of these events are materially bullish,” suggesting that the breakout above 5,500 may lack staying power without deeper fundamental improvements.
Lingering Headwinds and Valuation Concerns
Several risks could temper the recent upside. While headline tariffs have eased from their January peaks, the baseline rate remains substantially higher—acting as a growth headwind and inflation tailwind. At current levels, sector valuations appear stretched: according to FMP’s Sector P/E Ratio API, materials and industrials are trading near multi-year highs.
Political dynamics also pose uncertainty. Although President Trump is unlikely to remove Fed Chair Powell—aware of the market shock that would ensue—the feud may resurface ahead of the Fed’s May 7 meeting, where rate cuts remain off the table.
Meanwhile, Sevens Report expects 2025 S&P 500 EPS forecasts to be revised down, noting that a reduction from $270 to around $260 per share (or lower) seems more appropriate given current trends.