From Yahoo Finance: 2025-03-24 13:04:00

Traders are being advised by equity strategists that the worst of the recent stock downturn in the US may be over, citing positive metrics like investor sentiment and favorable seasonality. Major American stock indexes rebounded Monday after reports that President Trump plans to take a more targeted approach with tariffs.

The recent stock drop was fueled by concerns over Trump’s trade war and fears that the tech rally had gone too far. JPMorgan noted that momentum stocks were hit the hardest, erasing two years of gains in three weeks. However, with a more optimistic outlook, pockets of the market are beginning to recover.

While some see a period of calm ahead, Wall Street remains hesitant due to ongoing trade-policy uncertainty and concerns about tech valuations. Analysts are watching for Trump’s announcement of universal trade tariffs next month as a potential market catalyst. Market strategists are waiting for more clarity before giving a resounding all clear to pile into US equities.

Market internals have improved, suggesting the US economy is not heading into a recession. Despite solid economic data, low investor sentiment remains, leading to potential strong returns in the coming months if tariffs have a minimal impact. However, analysts are cautious and waiting for more clarity around the tariffs before fully committing to a longer-term view.

Read more: Wall Street Sees Signs That Worst of US Stock Selloff Is Over