While any tariff rollback may offer near-term relief, the economic drag from existing tariffs will be a key risk to monitor in the months ahead, adds Yeap in an April 14 note.
Wall Street staged a strong recovery last week, with the S&P 500 gaining 8.3%, the Nasdaq jumping 11.7% and the Dow Jones rising 6.2%. Much of the rally was sparked by a surprise 90-day delay in some import tariffs, which may signal a shift from escalation toward negotiation and form the basis for some short-covering, says Yeap Jun Rong, market strategist at trading solutions provider IG.
Over the weekend, further tariff rollbacks were announced, potentially extending the market’s optimism into the coming week. Notably, smartphones, computers, semiconductors and related equipment were exempted from new reciprocal tariffs, though they remain subject to the existing 20% fentanyl-related levies, notes Yeap.
