Markets roared back to life Wednesday after US President Donald Trump announced a 90-day pause on tariffs for countries that have not retaliated against the United States — a move that analysts say marks the beginning of a possible retreat from the administration’s hardline trade stance but leaves lingering uncertainty over long-term global economic stability.
Nearly every stock on the S&P 500 is rallying after the announcement, highlighting how much of a driver tariffs have been for markets in recent days.
Dan Ives, managing director at Wedbush Securities, said the move was “the news we and everyone on the Street was waiting for,” following a week of market chaos and surging bond yields.
“It’s been an epic debacle over the last week in the Beltway and real damage has already been done to the economy,” Ives said. “But China remains the key obstacle to figure out and this greatly impacts the US tech industry and consumers on a daily basis.”
'Economic gravity always wins'
The bond market reflected the confusion. Short-term yields rose while longer-dated ones fell — a reversal from the previous two days of trading.
“Bond markets are having a wild ride,” said Kathleen Brooks, research director at XTB, adding that “some of the excess central bank rate cuts that have been rapidly priced in for the UK, euro area, and the US” are now being reversed.
The yield on the 10-year Treasury edged up to 4.37%, reflecting caution amid the euphoria.
Nigel Green, CEO of financial advisory giant deVere Group, called the pause “a quiet but unmistakable admission” that the tariff strategy had backfired.
“Economic gravity always wins — and political bluster has its limits,” Green said. “This is just the first crack… Recovery will take more than a 90-day patch. It will take a full strategic reset.”
Green emphasized that while investors were offered short-term relief, trust in U.S. economic leadership has been eroded.
“Every erratic policy move chips away at confidence in the dollar’s future,” he warned. “Tariffs were always a blunt instrument. When the price of everyday goods spikes, it’s not foreign governments that pay — it’s domestic consumers.”
Widespread uncertainty remains
Trump’s tariff maneuvering, once marketed as a powerful tool to protect American interests, has now created widespread uncertainty, hampered supply chains, and clouded the investment outlook for multinational companies.
Gina Bolvin, president of Bolvin Wealth Management Group, said the timing of the pause — just days before earnings season begins — could give companies “a clearer backdrop for their guidance,” particularly in a market hungry for direction.
But she cautioned that the 90-day window may prove fleeting. “Uncertainty looms over what happens after the 90-day period, leaving investors to grapple with potential volatility ahead,” she said.
Despite the optimism, analysts across the board emphasized that Wednesday’s announcement should be viewed as a tactical retreat rather than a resolution. “The markets fired a warning shot,” said Green. “Stability and clarity are not optional. They are demanded — and if Washington fails to fully deliver, this temporary optimism could fade as quickly as it flared.”
With tariff threats on healthcare and pharma still looming, and the full implications of heightened China tariffs yet to be felt, Brooks concluded with a sobering reminder: “It’s another historic day for markets, but things could stabilize from here — or not.”