Markets Nearly Erase Trade War Losses
From Yahoo Finance: 2025-06-13 08:00:00
Just two months ago, the stock market was in turmoil, with the S&P 500 and Nasdaq-100 down nearly 20% and 22%. Today, investors are eyeing new all-time highs, with the Vanguard S&P 500 ETF and Invesco QQQ Trust just 2% and 1% below their peaks, respectively.
Back in April, fears of a recession and inflation gripped the market as Trump’s tariffs loomed. The S&P 500 briefly entered bear market territory, dropping 20%, while the Nasdaq fell over 22%. But in May, Trump paused the trade war, easing tensions and sparking a market rebound.
Economic data in May showed resilient growth and cooling inflation, calming investors. ETFs like VOO and QQQ led the rally, buoyed by tech strength and positive earnings outlooks. With trade war fears easing and markets gaining momentum, new all-time highs may be within reach.
While the S&P 500 hit a record high in February, trade tensions overshadowed optimism. Now, with markets on the cusp of breaking through to new highs, investors are revisiting bullish scenarios. If current momentum continues, headlines could shift from trade war turmoil to bull market breakout.
Read more at Yahoo Finance: Markets Nearly Erase Trade War Losses