Worry is persistent on Wall Street, despite President Trump’s decision to temporarily pause some tariffs. Investors are grappling with market volatility caused by Trump’s unpredictable actions, leading to doubts about future market rallies. UBS and other experts believe Trump’s trade policy could potentially lead the economy into a recession, and volatility is expected to continue. After initial optimism following Trump’s tariff delay announcement, stocks have sharply declined, indicating weakened sentiment. The S&P 500 has experienced increased volatility, and uncertainty remains high due to the uncertainty surrounding tariffs. Analysts caution against being too optimistic about reaching deals with trading partners, emphasizing the ongoing uncertainty in the market. Trump’s decision to maintain a 10% baseline tariff rate and the possibility of additional tariffs create further uncertainty for corporations. Overall, the market is cautious and wary of potential negative repercussions from Trump’s trade policies.
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