MARKET UPDATE
Xerxes Nabong, CFP®, CDFA®
Philip M. Maliniak, CRPC®
Nicole Brown-Griffin, CFP®, CDFA®, EA
Aaron Petty, Client Associate
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Trade Tensions Eased (for Now): 90-Day Tariff Pause
A breath of fresh air…
Today brought some surprising news out of Washington. President Trump just announced a 90-day pause on new tariffs for most countries, resetting them to a 10% baseline. The pause is meant to give time for additional trade negotiations. At the same time, tariffs on Chinese imports jumped to 125%, escalating tensions between the U.S. and China.
According to Trump, over 75 countries have reached out to negotiate following last week’s announcement of higher tariffs. Meanwhile, China responded by raising tariffs on U.S. goods to 84%.
Markets React Quickly
Markets responded with a strong rally—the Dow moved up 7.87%, the S&P 500 jumped 9.51%, and the Nasdaq gained more than 12.02%. It’s a big rebound after a tough few weeks. (Whew! At least for now.) Investors were clearly relieved to get some short-term clarity, even if long-term questions remain. This is a good reminder: markets tend to hate uncertainty. When there’s a bit more clarity—even temporarily—prices can move fast in the opposite direction.
Why Staying Invested Still Matters
We often tell clients that some of the best market days happen right after the worst ones, and today was a perfect example. Historically, this has played out in major events like the 2008 financial crisis and 2020’s pandemicdriven swings. It’s part of why timing the market is nearly impossible. Missing even just a handful of the market’s best days over decades can seriously hurt long-term returns. That’s why we focus on a long-term, disciplined investment plan, rather than reacting to every twist in the headlines.
Bottom Line
This 90-day pause gives markets a breather—but it doesn’t erase the fact that the global trade environment is still very fluid. Our approach? Stay cautiously optimistic. It’s okay to take a deep breath today, but we remain focused on the bigger picture.
As always, we’re here if you’d like to talk through how this impacts you and your financial plan. While trade tensions and market volatility may persist in the near term, we remain hopeful that cooler heads will prevail—and that this renewed investor confidence will not only hold steady but continue to build over time. We’re grateful for your trust in us and want you to know—we’re with you every step of the way, especially during times like these.
Your Team at Wealth Avenue,
