S&P 500: Tech Strength Lifts Market as Traders Brush Off US–China Tariff Fears

Tariffs? What Tariffs? Wall Street Snaps Back

Wall Street flipped the script Tuesday morning, with futures climbing sharply after days of heavy selling. Dow futures jumped 593 points (1.55%), S&P 500 futures rose 1.05%, and Nasdaq-100 futures added 0.83%. The move comes after a brutal stretch where the S&P lost over 10% in three sessions, briefly dipping into bear market territory. But after Monday’s chaos and record trading volume, traders came back with cash in hand.

Bluster or Breakdown? Traders Are Picking a Side

Despite all the headline heat around Trump’s sweeping new tariffs—some reaching as high as 100%—traders don’t seem convinced we’re headed for economic collapse. Treasury Secretary Scott Bessent’s comment that nearly 70 countries are lining up for trade deals paints a very different picture than one of isolation. Even a fake rumor of a 90-day tariff pause sparked a short-lived rally. Markets are clearly looking for reasons to believe this standoff has an off-ramp, even if it’s not visible yet.

Global Markets Say: Maybe It’s Not That Bad

The rebound wasn’t just a U.S. story. Europe joined the rally with the Stoxx 600 up 1.3%, FTSE 100 up 1.4%, and the DAX gaining 0.8%. Treasuries also told a story—10-year yields popped back over 4%, not exactly panic territory. For all the fiery rhetoric between the U.S. and China, other players like the EU and Vietnam are leaning toward diplomacy, not retaliation. That kind of global restraint may be offering traders just enough confidence to stay in the game.

Traders Smell Opportunity in the Chaos

Big-name tech stocks like Nvidia and Palantir caught a bid, even as the broader market struggled to steady. Classic dip-buying behavior. Traders have seen this movie before—big talk, big headlines, but often a walk-back after markets react. The growing sense is that investors are pricing in the noise, not the worst-case. When fear spikes, value hunters tend to show up.

Not Quite Panic. Not Quite Confidence.

There’s no doubt the tariff headlines are real, and the risks are serious. Even Trump’s traditional business allies are openly criticizing the strategy. But the fact that markets bounced—even briefly—suggests traders aren’t ready to throw in the towel. It’s not optimism, exactly. It’s more like: this might not be as bad as it sounds.

In a market gripped by uncertainty, that kind of thinking matters. It’s not bullish, but it’s definitely not frozen in fear either—and for now, that’s keeping risk appetite alive.

More Information in our Economic Calendar.