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Market Bottom Or Another 'Scared Cat Bounce'? Wall Street Veteran Remains Skeptical

Wall Street is enjoying a strong bounce at the end of a turbulent week that sent the S&P 500 into correction territory for the first time since October 2023.

The S&P 500, as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), was up 2% by late afternoon trading in New York, eyeing the strongest surge in more than four months.

Yet, veteran investor Ed Yardeni isn't convinced the worst is over, calling the rebound more of a "scared cat bounce" rather than a sign of a final market bottom.

In an email sent Friday, Yardeni, president of Yardeni Research, highlighted two key developments that fueled the end-week rally.

The first is the likelihood that a government shutdown will be avoided. Senate Democratic Leader Chuck Schumer said Thursday he would support a Republican-backed short-term funding bill, removing an immediate threat to government operations.

The second, more surprising catalyst was President Donald Trump's silence on tariffs.

Investors appeared to cheer the absence of trade-related rhetoric, with Yardeni saying, ...