U.S. stocks have rebounded to record highs after a selloff driven by the U.S.-Iran conflict, with the S&P 500 showing strong upward momentum. According to Sonu Varghese (global macro strategist at Carson Group), the recent surge is indicative of momentum begetting momentum. Hedge funds and volatility-linked funds have shifted from being net sellers to buyers, with commodity trading advisors alone purchasing about $20 billion in equities recently. Additionally, levered exchange-traded funds (ETFs) have added another $27.5 billion. Historical data supports the bullish sentiment, showing that after the S&P 500 logs a fresh record following a pullback, it typically extends gains over the following weeks. Despite concerns about a potential bull trap, historical trends indicate that stocks generally maintain their upward trajectory. However, some analysts, like Steve Sosnick (chief strategist at Interactive Brokers), express skepticism about the sustainability of this rally given the backdrop of rising oil prices and bond yields.