The U.S. stock market demonstrated stability by recovering from its previous decline which started after tariff announcements. The S&P 500 index has recovered 20% since April 8 to eliminate its year-to-date losses and it now shows a 1.5% gain for 2025. Market participants maintain a hopeful outlook while volatility indicators show improvement and technical signals point toward recovery from previous market declines.
The market recovery stems from active trade negotiations and investor expectations that the most severe tariff effects have passed. The market remains reactive to trade negotiations because high stock valuations make them susceptible to negative surprises. Investors closely follow the upcoming trade negotiation deadlines between the United States and its trading partners.
