Experts Forecast New Bull Market After April's Market Rebound
New York, Friday, 30 May 2025.
Market analysts, including Tom Lee, suggest recent market optimism may herald a bull market, as U.S. stock indexes recover and investor confidence grows despite tariff concerns.
A Shift in Market Sentiment
Following the downturn in March and April 2025, market sentiment has shifted dramatically. Analysts from various financial institutions, including Tom Lee from Fundstrat Global Advisors, indicate a renewed optimism, predicting a potential bull market as stock indexes recover [1][2]. This optimism is partly fueled by a pause in the implementation of steep tariffs that had been scheduled to affect EU imports until July 9, 2025, a move expected to alleviate immediate trade tensions [3].
Institutional Influence
Recent data highlights substantial institutional activity which often signals renewed confidence in market stability [4]. Heavy trading volumes in late May 2025 suggest that major players are either buying into the recovery or strategically adjusting portfolios in anticipation of a shifting economic climate [5]. This aligns with observations that institutional support can reinforce market resilience, particularly after corrections like the one seen in April.
Less Volatile Cycles
Within the cryptocurrency market, a similar trend is evident. Bitcoin’s realized volatility has decreased significantly, averaging below 50% compared to previous cycles that soared between 80% and 100% [6]. This reduction in volatility, alongside a substantial $2 trillion market cap positioning Bitcoin as a leading global asset, indicates a less tumultuous yet strong bull cycle [7]. Reduced speculative excesses due to regulatory measures and decreased leverage in prominent exchanges further underpin this sturdier market environment.
Economic Impact and Future Outlook
Economists suggest that the rebound observed in May could bolster U.S. economic stability if this positive trajectory continues [5]. Despite ongoing concerns about macroeconomic factors like tariffs, the growth in investor confidence and the robust performance of leading market indexes are contributing to a cautiously optimistic outlook for the latter half of 2025. The interplay of these factors could catalyze long-term economic benefits if sustained.