In Wall Street’s Epic Comeback, Unsolved Market Mysteries Abound

It was the week Wall Street got its swagger back. Stocks staged a gravity-defying rebound to wipe out all losses from April’s tariff shock, Corporate America unleashed billions in pent-up bond sales and speculative assets from crypto to unprofitable tech companies surged.

Yet beyond the relief rally — built on hopes that the White House will ink trade deals soon enough — the financial ecosystem is flashing warning signs for the likes of hedge funds and day traders plunging back into risk.

Signals in the bond market show the Federal Reserve in a policy bind, imperiling hopes that Jerome Powell ...