The ongoing trade war initiated by President Donald Trump is causing significant uncertainty for U.S. companies, impacting their financial forecasts and investor expectations. This uncertainty has led to a slowdown in Wall Street's momentum following a recent two-day rally, as companies struggle to predict future economic conditions. Federal Reserve Governor Christopher Waller has indicated that the full impact of tariffs may not be clear by July. He emphasized the Fed's willingness to cut interest rates if there is a meaningful weakening in the labor market, suggesting a strategy to look through any price increases caused by tariffs. Businesses are reportedly 'frozen' by the uncertainty surrounding tariffs, with many CEOs expressing frustration over the unpredictable trade policies. This situation has led to a cautious approach among companies, with some pulling back on financial forecasts for the year due to the fluctuating tariff environment. Deutsche Bank has lowered its S&P 500 forecast to 6,150 from 7,000, reflecting about 14% upside from current levels, due to expected impacts on 2025 earnings, with earnings per share projected to drop to $240 from a prior forecast of $282. The S&P 500 is expected to trade within a range of 4,600 to 5,600.