Wall Street soared dramatically Tuesday after President Trump unexpectedly announced a 90-day pause on recent tariffs, temporarily cutting rates to 10% from 104%, but threatening an eventual hike to 125%. The S&P 500 jumped 7%, and Nasdaq surged 9%, driven by investor relief and aggressive short-covering.

Treasury Yields Stabilize, Dollar Strengthens

Treasury yields moderated after a successful $39 billion auction of 10-year notes, easing recent bond-market stress. Initially weaker, the dollar quickly reversed, rising sharply against the yen and other majors as investors rapidly shifted toward risk-on sentiment.

Strategists Welcome Pause but Remain Cautious

Financial experts broadly welcomed Trump’s move, calling it timely clarity before Friday’s earnings season kickoff. Gina Bolvin noted relief but warned volatility could return post-pause. Stuart Thomas and Jay Hatfield praised the administration's negotiation tactics, seeing undervalued equities now primed for gains.

Skepticism on Timing and Sustainability

Despite market enthusiasm, analysts questioned the decision’s motives and warned about lingering uncertainties. Klarity FX’s Amarjit Sahota argued the pause could amplify uncertainty, citing recent Treasury market turmoil. F/M Investments’ Alex Morris cautioned unresolved issues remain, highlighting inflation risks from consumer stockpiling. Interactive Brokers’ Steve Sosnick emphasized persistent uncertainty, noting tariffs could return in 90 days, complicating corporate planning and investor confidence.