S&P 500 Rises 7.8% Since Tariff Shock Amid Market Debate on Economic Impact and Outlook

Since the imposition of tariffs, the S&P 500 index has risen by 7.8%, despite concerns that the economic impact of these tariffs has yet to fully materialize. Market participants are debating whether this rally reflects an overreaction to initial fears, prompting a buying opportunity, or if it signals the early stage of a prolonged economic downturn. The uncertainty centers on whether expansive and high tariffs are being priced into stock valuations or if investors anticipate these tariffs will not be sustained. This debate highlights a broader tension in the market between optimism about a potential trade resolution and apprehension about an economic slowdown exacerbated by tariffs and other irreversible factors.