American stock markets have largely shrugged off the impact of President Donald Trump's ongoing trade war, with investors increasingly betting on a more market-friendly stance from the administration in the coming months. This shift in investor sentiment is reflected in recent price movements, including those of the S&P 500 index, which suggest a market pricing in a resolution or de-escalation of trade tensions. Bank of America's Michael Hartnett noted that fears of a US recession could diminish further if upcoming economic data, particularly Friday's jobs report, shows resilience. However, while the equity markets appear optimistic, the bond market remains more cautious, signaling that even if trade tensions ease, challenges may persist. Overall, investors are positioning themselves with the expectation that relief from the trade war will arrive soon to sustain market confidence.