The U.S. stock market quickly rebounded from significant losses triggered by President Trump's unexpected announcement of steep tariffs on April 2, which initially caused the S&P 500 to drop by 12% and the Dow Jones to lose nearly 4,600 points. The market's recovery came after Trump announced a 90-day pause on most tariffs, except those against China, leading to a significant rally in the S&P 500. Despite the recovery, uncertainty remains high due to ongoing fears about the long-term effects of Trump's tariffs and mixed signals from financial markets, such as declining consumer confidence but strong employment data. The Federal Reserve's decision to pause rate cuts and the robust profit performance from major companies like Microsoft and Meta have also contributed to market stabilization. However, the volatile nature of Trump's tariff strategy continues to create unpredictability in the market, as exemplified by companies adjusting their financial forecasts and the lack of finalized trade agreements with partners.

President Trump's announcement of steep tariffs on April 2 led to a sharp decline in the U.S. stock market, with the S&P 500 dropping by 12% and the Dow Jones losing nearly 4,600 points within four days, raising fears of a potential recession.

The market rebounded after Trump declared a 90-day pause on most tariffs except those against China, resulting in a significant rally in the S&P 500 and a temporary restoration of investor confidence.

Uncertainty persists due to the unpredictable nature of Trump's trade policies, which have led to mixed signals in financial markets, such as declining consumer confidence but strong employment data, creating a complex economic outlook.

The Federal Reserve's decision to pause rate cuts, supported by strong employment numbers, alongside major companies exceeding profit expectations, has contributed to market stabilization despite ongoing fears regarding the tariffs.

Many companies, including United Airlines, have adjusted or withdrawn their financial forecasts due to the uncertainty surrounding the long-term impact of Trump's trade policies, indicating continued economic volatility.

Trump's tariff strategy has resulted in one of the most volatile periods for the market since the pandemic, with the administration yet to finalize agreements with trading partners, leaving the market vulnerable to further fluctuations.

Financial markets are closely watching how Trump's tariff plans will evolve, as any move to implement the initial tariff plan could lead to market reactions similar to those experienced in early April.