The panic is over… Or is it? Over the past week, the stock market has fully recovered April’s losses and is now showing gains year-to-date. After dipping into bear territory, the Nasdaq has surged back into bull territory, rising 23% in less than a month.This is a quick review from Ivan Kompan, Edinburgh Business School analyst.
Investor sentiment is shifting rapidly. In April, the Fear & Greed Index signaled extreme fear, but now it leans toward greed. The main driver is Trump — a master of sudden threats and even faster U-turns. At talks in Switzerland, the U.S. and China agreed to cut tariffs from 125% and 145% to 30% and 10%, respectively — a move the markets cheered.
April inflation came in below expectations, prompting Trump to lash out at the Fed and demand rate cuts. Yet Powell remains firm. Markets don’t expect a cut anytime soon — the probability of no change until September is 61%.
Trump’s Middle East tour also lifted spirits. Gulf states promised billions in U.S. investments, and Boeing sealed a record deal with Qatar Airways. But…
Retail giants like Walmart warn of looming price hikes. Even after the “diplomatic win,” tariffs remain higher than before.
Meanwhile, U.S. long-term bond yields are rising. Investors are wary of buying them, complicating deficit financing and driving up borrowing costs.
Bottom line? Despite market highs and investor greed, uncertainty looms — from tariffs and debt to fiscal policy. So maybe it’s more accurate to say: “The panic is over?!”
*And finally, we would like to remind you that the information you have just listened to is not an investment advisory. Remember – investments in the stock market are always tied up with financial risks. So be careful and cautious.
