US stocks surged Thursday, closing just shy of a record high, after President Donald Trump instructed his administration to explore reciprocal tariffs on numerous US trading partners. The rally has led some investors to believe that Trump’s tariffs are less effective than initially thought, with some describing them as “bark” rather than “bite.” However, experts warn that the market is not immune to further shocks tied to tariffs or other economic measures.
While the S&P 500 index ended Thursday at a new high, analysts caution that this does not mean investors should become complacent. The ongoing trade tensions between the US and its trading partners remain a concern, and any escalation could still impact the markets. With Trump’s administration exploring reciprocal tariffs, investors are advised to maintain a cautious stance and monitor developments closely.
The recent rally on Wall Street suggests that investors are becoming increasingly skeptical of the effectiveness of Trump’s tariffs in achieving their intended goals. As the trade tensions continue to simmer, it is essential for investors to stay informed and adapt their strategies accordingly.
Source: https://www.marketwatch.com/story/the-stock-market-is-nearing-records-because-trumps-tariffs-are-seen-as-more-bark-than-bite-d10021e2