Tariffs caused market drawdown but stocks rebound; S&P 500 nears all-time high

From Yahoo Finance: 2025-05-20 12:17:00

After President Trump’s tariffs caused a market drawdown, major stock indexes have rebounded. S&P 500 nears all-time high, but some caution next move may not be definitively higher. Investor sentiment has shifted from historically low levels to optimism, with tech rally leading the market’s return.

Trump’s tariff pause with China boosted stocks, prompting higher year-end targets for S&P 500. Economists lowered recession probabilities but consumer sentiment remains low. EY chief economist warns of economic drag from tariffs, with US growth approaching “stall speed” by year end. Risks remain tilted to the downside.



Read more at Yahoo Finance: Dow, S&P 500, Nasdaq slip as emerging doubts threaten Wall Street’s rally