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The US stock market rapidly recovered to pre-tariff levels within weeks after President Trump's initially drastic tariff announcements. A 90-day tariff pause, coupled with de-escalation in US-China trade tensions and strong corporate earnings, fueled the rebound. However, uncertainty remains about the long-term economic impact of Trump's trade policies, with some companies issuing dual financial forecasts based on recessionary or non-recessionary scenarios. While the market has seen gains, concerns persist about the potential for renewed market volatility when the tariff pause expires.

Prepared by Christopher Adams and reviewed by editorial team.