Tariff Reversal Fuels Stock Market Rally Amid Trade War Uncertainty
Investors breathed a sigh of relief as trade war threats gave way to diplomatic progress. US equities rebounded sharply Tuesday, erasing Friday’s tariff-induced losses after President TRUMP delayed planned EU levies until July 9. The S&P 500 and Nasdaq Composite climbed 2% and 2.5% respectively, buoyed by both the tariff reprieve and unexpectedly strong consumer confidence data.
Market participants continue operating in a whipsaw environment where trade policy announcements create immediate volatility. Friday’s late-session selloff reversed just 72 hours later when the administration pressed pause on proposed 50% tariffs. ’Talks will begin rapidly,’ Trump declared via Truth Social, signaling potential de-escalation with European counterparts.
