From Yahoo Finance: 2025-06-05 06:04:00

Stock investors are showing resilience to U.S. trade policy twists, with the S&P 500 nearing its record high. Tariff fears have eased, leading to market rebound despite Trump’s steel tariff announcement. Volatility has decreased, but markets remain sensitive to trade negotiations. Some firms are raising year-end targets due to lower expected tariffs impact.

Volatility measures indicate calming fears about trade, with the VIX index dropping. The S&P 500 has traded above its 200-day moving average, showing signs of recovery. Options data suggests growing bullish sentiment, but some investors warn of ongoing tariff threats. Stock valuations are high, making the market more sensitive to negative news.

Investors are cautiously optimistic about the market’s momentum despite ongoing trade tensions. The market is no longer solely focused on tariffs, with firms becoming more positive about equities’ outlook. While some warn of potential tariff disruptions, others believe the worst is behind us. Volatility has moderated, but uncertainty remains a concern for investors.



Read more at Yahoo Finance: Analysis-US stocks heal from tariff pain but trade news to keep markets edgy