Overview

• Trump’s 90-day pause on most tariffs, announced after unsettling market signals, has not calmed investor concerns over long-term trade policy uncertainty.
• Global equity and bond markets remain volatile, with U.S. stocks fluctuating sharply and 10-year Treasury yields still elevated after a week of selloffs.
• China’s retaliatory tariffs and the U.S.’s 145% levies on Chinese imports have deepened fears of economic instability and potential recession.
• Retail investors have seized the opportunity to buy equities during market dips, while hedge funds underperformed, missing key rallies due to bearish positions.
• The bond market’s atypical behavior, including simultaneous declines in stocks and Treasuries, spooked the White House, pressuring Trump to revise his tariff strategy.