Markets Recover as Trade War Fears Subside
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Investors’ focus on a potential ’Minsky moment’—a sudden collapse in confidence in the US dollar—has waned as equity markets rebound. The Nasdaq has clawed back nearly all its losses, now trading just 1.4% below pre-tariff announcement levels.
The recovery appears driven by softening rhetoric from the White House, with retailers warning of imminent supply chain disruptions. market participants are interpreting this as increased likelihood of a negotiated solution to trade tensions.
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