Markets rebound after Donald Trump’s Truth Social tariff pause, but Wall Street warns: ‘Don’t be fooled, the chaos isn’t over yet’

After days of chaos, the stock market finally turned green after being in red for a long time. Stocks rebounded sharply on Wednesday after US president Donald Trump's unexpected announcement on his Truth Social that he would pause his broad tariffs on most countries for 90 days, as per a report. However, a 10% universal tariff will be in effect during this period.

Wall Street Cheers But Cautiously

The president of Bolvin Wealth Management, Gina Bolvin said, "The immediate positive reaction shows the announcement was the pivotal moment we’ve been waiting for,” quoted Fortune.

According to the report, investors consider that the US president's pause is a step toward more clarity on the Trump administration’s trade policy.


Bolvin claimed that “This pause may provide companies with a clearer backdrop for their guidance, offering some relief to a market hungry for direction,” quoted Fortune. She also pointed out that the timing “couldn’t be better” as major financial institutions including Bank of New York Mellon, BlackRock, JPMorgan Chase, and Wells Fargo will report their earnings on Friday, according to Fortune.

The Calm Might Be Temporary

However, there are still concerns and investors are not sure about what is the Trump administration's next step or what it has planned to do after the 90-day period.

A portfolio manager of Harbor Capital and a former member of the Federal Reserve Bank of New York’s Markets Group, Jake Schurmeier, mentioned that Trump's decision to halt the tariffs was good, but that does not reduce the high uncertainty, according to Fortune.

Schurmeier said, “We likely go higher for a few days, but I think permanent damage has been done,” quoted Fortune.

Bankrate senior economic analyst Mark Hamrick also highlighted that investors are embracing “word of a cease-fire” but would have to wait to find out if negotiations between the United States and other countries are successful, reported Fortune.

While, Trump paused tariffs on all countries, except China, where he instead increased the tariff rate to 125%, which could lead to an escalating trade war.

Hamrick asserted that, “Something akin to a worst-case scenario has been delayed, if not averted,” quoted Fortune. He also added that, “Now, the focus turns to what happens with scores of countries including China.”

FAQs

Is this a permanent change in trade policy?
No, the pause is temporary and only lasts for 90 days.

Are investors feeling secure now?
Some are hopeful, but most are cautious about what happens after 90 days.