The American stock market is showing a rapid recovery following the April decline caused by concerns over the economic impact of President Donald Trump’s tariff policies. On Friday, the S&P 500 index surpassed the 6000-point mark for the first time since late February, driven by the release of the U.S. employment report, which eased worries about the state of the economy, reports Baltimore Chronicle citing Reuters.
Despite the rise in indexes, investors remain cautious due to uncertainty related to changes in trade policy. On April 2, President Trump announced the so-called “Liberation Day,” which was followed by a market drop. However, he later softened some of the most severe tariffs, signaling a market stabilization.
Market participants are currently closely monitoring the potential effects of other duties that might still be introduced on the U.S. economy. Additionally, concerns about inflation persist, which could exert additional pressure.
One of the key reference points for investors will be the upcoming Consumer Price Index report. Its release precedes the Federal Reserve System’s meeting scheduled for June 17–18. The central bank is expected to keep the current interest rate unchanged, yet traders are pricing in the possibility of two 25-basis-point cuts by the end of the year.
Earlier we wrote that U.S. trade deficit narrows to two-year low.