From Yahoo Finance: 2025-05-16 17:52:00

In early April, President Donald Trump announced sweeping tariffs, causing the S&P 500 to drop 12%. Economists warned of a recession as consumer confidence weakened. However, the S&P 500 rallied 5.3% this week, turning positive for 2025. Trump’s tariff drama led to a stock market plunge, but a 90-day pause for most tariffs brought a 9.5% surge for the S&P 500. While bonds and the dollar haven’t fully recovered, recent data shows the economy is still doing okay. U.S. companies continue to deliver strong profit reports, boosting the market despite lingering uncertainty around tariffs.

Wall Street’s outlook improved as the U.S. negotiated trade deals with the UK and China, leading to a temporary rollback of tariffs. Despite strong profits, many companies remain cautious about the future due to tariff uncertainty. Market stalwarts like Apple and Alphabet are still down for the year, and analysts advise investors to remain cautious as tariffs remain in place. The unpredictability of the trade front continues to pose a risk for the market.



Read more at Yahoo Finance: How the S&P 500 recovered all of its losses for the year