Welcome to today's episode where we dive into the roller coaster ride of the U.S. stock market following President Trump's recent trade war escalations. Just weeks after Trump announced steep tariffs on April 2, the market had a dramatic drop—about 12% for the S&P 500. Fast forward to last Friday, and the index had made a remarkable recovery, showing gains for nine consecutive days, bringing it back to pre-tariff announcement levels.

However, it's worth noting that the S&P 500 still sits over 7% below its all-time high earlier this year. The market’s resurgence began when Trump tweeted about a “90-day PAUSE” on most tariffs, triggering a massive rally. He even declared, “this is a great time to buy.”

Yet, amidst this volatility, many companies are cautiously optimistic. Reports indicate that three out of four companies in the S&P 500 exceeded profit expectations, with heavyweights like Microsoft and Meta leading the charge. Still, uncertainty looms, compelling CEOs to offer dual financial forecasts—one assuming a recession and one without.

Investment expert Chris Zaccarelli warns if the initial tariff plan resumes after the pause, we could witness a similar market reaction as seen in early April. As we move forward, the market remains in a state of watchful waiting amidst ongoing trade tensions. Stay tuned for the next episode as we continue to analyze these financial developments.
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