Following Trump’s “liberation day” tariff announcement, stocks have bounced sharply from spring lows, with some Wall Street pros saying the worst has ended and setting the stage for a relatively mild summer session.
“Volatility will continue. … But I think extreme volatility is behind us,” Solidarity Capital CEO Jeff McLean told Yahoo Finance in an interview Wednesday.
According to McClean, investors may be better off fleeing, between range-bound price action, lack of clear direction from the Fed and headline fatigue from Washington, at least until a more clear signal emerges.
“Volatility will calm a little more this summer as people check out from the daily news that has caused a lot of tariff-related noise,” he said.
Since hitting April lows, the benchmark S&P 500 (^GSPC) has reached around 20%, led by rapid rebounds in beaten sectors such as Communication Services (XLC), Consumer Discretion (XLY), and Technology (XLK).
WilmacGo, Associate Chief Investment Officer at Prime Capital Financial, reiterated the view that the market could be quiet throughout the summer, noting that even the long-term Treasury yield, which is the biggest concern in recent weeks, continues to exist in most range between 4% and 5% despite ongoing noise from Washington.
“My recommendation right now is to enjoy the summer,” he said. “There’s absolutely nothing to be excited about the extent of its range being significantly increased or broken by a drawback,” he added.
Of course, many events will be able to keep investors busy for the coming months, starting with the Federal Reserve’s Jackson Hole Symposium in August. Important tariff deadline for early July Future Fed conferences will shape rate cut expectations and shape Trump’s “big, beautiful bill” advancements through the Senate.
But so far, traditional market drivers such as revenue, economic data and Fed policy have taken the backseat of politics.
“It’s an attractive market environment,” McGau said. “D.C. promotes many trickle-down effects through the stock market and trade policy through the basis of stocks.”
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CFRA Research’s Chief Investment Strategist Sam Stovall added historic background and said that in June there is a tendency for mild volatility stocks to be weak. He described the current amendment as “manufactured” and is primarily shaped by President Trump’s trade decisions.
