Markets Stage Sharp Rebound as Dip-Buyers Return

Markets Stage Sharp Rebound as Dip-Buyers Return
Markets rebounded strongly over the past two weeks, with aggressive buying despite negative macroeconomic headlines and geopolitical risks. The Magnificent Seven and small-cap stocks led gains, with Broadcom surging 18.1 percent. Non-U.S. equities, particularly South Korea, outperformed globally. Energy stocks retreated as capital rotated into blockchain, industrials, and momentum-driven names. Both growth and value factors participated in the rally. However, analyst Erik Conley maintains a defensive stance with 15 percent cash allocation, citing elevated valuations, narrow market leadership, and the risk of sharp reversals when bullish flows eventually subside. The narrow breadth of this rally raises questions about its sustainability.