Stocks Hold Firm as Trump Buys More Time for Talks

Markets Stay Resilient Amid Tariff Concerns, Eye Negotiation Room

Global stock markets held steady on Tuesday as investors looked past initial concerns over fresh U.S. tariff threats, focusing instead on the possibility of extended negotiations.

A Pause After Jitters

The latest trade comments from former U.S. President Donald Trump briefly rattled investors. However, the market stabilized on expectations that a deal might still be negotiated, giving traders confidence that escalation could be avoided—for now.

• S&P 500 futures edged up 0.1%, rebounding after dipping from a record high the day before.

• European stocks remained largely unchanged, reflecting a wait-and-watch attitude.

• In Asia, equities climbed modestly, driven by optimism around a potential cooling of trade tensions.

Bond Yields Rise, Dollar Falls

While equities steadied, global bond prices fell as yields climbed. The 10-year U.S. Treasury yield rose by 2 basis points, hitting 4.40%, signaling a shift away from safe-haven assets amid improved risk sentiment.

At the same time, the U.S. dollar slipped 0.2%, continuing its year-to-date downtrend as investors recalibrated expectations for future rate moves and global trade shifts.

What This Means for Investors

The market’s muted reaction signals growing resilience to political noise, especially around trade policy. However, analysts caution that the risk of policy uncertainty remains, and traders should stay alert to any abrupt changes in tone or action.

The Bigger Picture

With U.S. elections on the horizon and global economies still walking a tightrope between inflation and growth, any hint of new trade barriers could trigger volatility. But for now, the markets are betting on dialogue over disruption.