Trump Postpones Tariffs for 90 Days as S&P 500 Soars

According to the chart of the S&P 500 (US SPX 500 mini on FXOpen), the index is currently trading near the 5,500 mark.

This performance is particularly promising given that just yesterday morning, the index hovered close to 4,900.

What Triggered the Rally in Equities?

The sharp rally seen on Tuesday evening followed a surprise announcement by the US President. He decided to defer the introduction of global trade tariffs — initially set out on 2 April — by 90 days. That announcement had previously caused a steep decline in the index (highlighted with an arrow).

However, the delay does not apply to China. In fact, tariffs on Chinese imports were increased. “In response to China’s continued disregard for global markets, I am raising the tariff the United States imposes on China to 125%, effective immediately,” Donald Trump stated, according to media reports.

Markets reacted positively to the development, with major indices recovering and Goldman Sachs analysts retracting their US recession outlook.

S&P 500 Technical Outlook (US SPX 500 mini on FXOpen)

Despite the significant rebound, the broader trend for equities remains bearish (as shown by the red trend channel).

Bullish signals include: 

→ The formation of a Double Bottom pattern (points A–B) near the 4,900 level;
→ The price has moved into the upper half of the downward channel.

Bearish factors to consider: 

→ Bulls are facing a key resistance zone around the psychologically important 5,000 level;
→ Although tariff implementation has been delayed, it hasn’t been revoked. This leaves room for renewed trade tensions, which could continue to weigh on the S&P 500 (US SPX 500 mini on FXOpen) over the coming months.

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