President Donald Trump announced a temporary halt on tariffs for 90 days, sparking optimism in financial markets, including a rise in the S&P 500 and cryptocurrency values.
Causes of Market Surge
The sharp rise of the S&P 500 coincided with increased trading volumes not seen in recent times. This positively impacted Bitcoin's value, suggesting a broader recovery may be underway. However, there are concerns about the sustainability of this growth.
Can This Optimism Last?
While the tariff suspension has fostered a more optimistic market environment, experts warn that it may not lead to long-term changes. Market strategist Peter Oppenheimer from Goldman Sachs points out that sudden price changes often occur from low positioning levels, indicating that the current rally might be fleeting.
Economic Indicators and Outlook
Economists assert that for a genuine market recovery, four key conditions must be met: reasonable asset valuations, pessimistic investor sentiment, observable macroeconomic improvements, and decisive policy measures. Unfortunately, the current market lacks these fundamental elements.
Market participants are advised to remain cautious as they navigate through the current uncertain landscape, focusing on economic data.
