JPMorgan has reiterated a tactical bullish outlook on the S&P 500, despite a recent 2.6% decline last week that reduced the month-to-date gain to 4.2% and pushed the year-to-date return into negative territory at -1.3%. The firm highlighted key factors supporting this positive stance, including stable macroeconomic data, positive corporate earnings, and expectations of further de-escalation in the trade war. JPMorgan also noted that the S&P 500 outperformed small-cap indices but lagged behind the Nasdaq 100. Additionally, the firm anticipates that international markets will trade more favorably throughout the year, although bond yields might rise due to tariff-driven inflation and fiscal concerns. Separately, Morgan Stanley reported strong market demand, estimating $15 billion of fresh daily inflows into the stock market, evenly split among retail investors, commodity trading advisors, and corporate buyers. This influx is contributing to consistent buying on market dips, signaling broad bullish sentiment among both retail and institutional investors.