Wall Street Rebounds Amid Tariff Fears, But Uncertainty Remains

The S&P 500 ended Monday in positive territory, recovering from early losses as investors braced for a turbulent week. Markets remain on edge as President Trump prepares to announce sweeping tariffs by Wednesday, with auto imports expected to be a primary target.

Over the weekend, Trump escalated tensions by threatening tariffs on all of America’s trading partners, sparking concerns of a global economic slowdown. "You’d start with all countries," he stated, though he suggested the measures would still be fairer than those imposed on the U.S.

Despite earlier reports that the administration would target specific nations, recent signals indicate a broader approach. Investors are now anxiously awaiting the release of a key U.S. jobs report at the end of the week, which could provide insight into the economy’s resilience.

This latest market turbulence follows a volatile quarter marked by optimism over tax cuts giving way to fears of recession driven by aggressive trade policies. Both the S&P 500 and Nasdaq posted their biggest quarterly losses since 2022.

"The market craves clarity, but it’s not going to get any," said Francis Gannon, co-chief investment officer at Royce Investment Partners. With uncertainty dominating sentiment, volatility is expected to remain high as investors navigate shifting trade dynamics.