Investor sentiment is back in euphoric territory with stocks and speculative names surging, but stretched positioning has some strategists on edge.

The S&P 500 has historically performed better following record highs as compared to its forward returns following any random day.

President Trump's tariffs could hit the economy badly and lead to higher inflation. But Wall Street investors are reacting by sending stocks to record highs.

The S&P 500 closed at an all-time high for the ninth time this month, while the tech-heavy Nasdaq hit its 13th record July close.

US stock market continued its winning streak as the S&P 500 and Nasdaq Composite reached new record highs, driven by strong corporate earnings, booming tech stocks, and growing hopes of a Federal Reserve rate cut.

Investors held onto hopes that the U.S. and Japan’s trade agreement could lead to a tariff breakthrough with other countries, and pushed the S&P 500 and Nasdaq Composite to fresh record highs.

Six months into President Donald Trump’s second term, a quick glance at the stock market offers a reassuring picture: The S&P 500 just closed above 6,300 points for the first time ever and has notched eight record highs in the past month.

The S&P 500 closed at a fresh record high on Wednesday, fueled by renewed optimism over global trade following a new agreement between the U.S. and Japan. The upbeat sentiment raised hopes that the Trump administration could secure further deals,

Massive moves in stocks such as Kohl’s and Opendoor Technologies are raising questions over whether a new wave of meme stock trading is underway and what that signals about risk appetite more broadly.

Perhaps that’s one reason stocks are selling off globally this morning. While most indexes in Asia and Europe remain near their all-time highs, there is broad-based but mild selling in all of them.