The Citi U.S. Earnings Revision Index has turned positive for two consecutive weeks after experiencing 20 straight weekly declines, signaling a potential improvement in corporate earnings expectations. This shift coincides with a rebound in investor sentiment, as reflected by the American Association of Individual Investors (AAII) sentiment survey, which shows bullish sentiment rising above bearish sentiment for the first time since late January 2025. The Investors Intelligence (II) sentiment poll also indicates an increase in bullish investors to 42.3% and a decline in bearish investors to 26.9% as of the week ending May 23, 2025. Market volatility has decreased since late April, contributing to the U.S. market's recovery from the performance losses incurred during the first quarter and early April. Despite the challenges posed by tariffs earlier in the year, the S&P 500 has maintained a positive return in 2025, with price-trend following strategies generating nearly 10 points of alpha since early March. Earnings have been identified as the primary positive factor supporting market performance amid these conditions.