Record-Setting Momentum Rally Is Drawing Doubters

April’s rally in risk assets has weathered stalled peace talks, signs of resurgent inflation and a central-bank succession drama. Investors may be about to find out if the speed of the advance itself poses a threat to a further ascent.

Global equities enter the week at or near records, with the S&P 500 up almost 10% since the end of March, putting it on pace for the best monthly advance since late 2020. Treasury yields fell Friday as the closing of a Justice Department probe of Fed Chief Jerome Powell cleared a path to Kevin Warsh’s confirmation, boosting bets that the central bank could resume cutting interest rates before the year is out.