US stock indexes rose 8-12% after Trump's decision to delay tariffs for 90 days, supporting oil prices, but confidence is lost

Speculative jumps continue on the stock markets, and yesterday, after Trump's statement on postponing the introduction of tariffs for 90 days and reducing the rate to 10% for all countries except China, the indices rose by 8-12%.

At the same time, Trump is imposing additional tariffs on China (totaling 125%) due to Beijing's unwillingness to negotiate.

The Dow Jones Index rose 7.8% yesterday, the S&P 500 rose 9.52%, and the high-tech Nasdaq rose 12%, recovering almost half of last week's staggering decline and raising the market value of the US stock market by about $4.8 trillion (after falling by $11 trillion).

This reversal was the result of strong pressure from society, politicians, and businessmen on Trump, and his concession means that the US president cannot ignore the negative reaction from investors, legislators, and donors to his party.

June Brent crude futures rose 3.6% to $65.3/barrel yesterday (-14.8% for the week), and US WTI futures rose 4.9% to $61.9/barrel (-14.7%), but still remain under pressure from the ongoing trade war between the world's largest economies.

Experts believe that stopping the new wave of the global crisis simply by someone "changing their mind" will no longer work, since trust in the US as a reliable partner and in the economic and global policies of the new Presidential Administration has been lost.

There are no guarantees in business that a similar situation will not happen again, so it will take into account maximum risks in the calculations and strategies of enterprises in the US, will be much more cautious in investments and development, and the majority will begin to look for ways to preserve assets in a "safe haven" as much as possible.

Trust is gained over years and decades, but lost in minutes and hours, and when a country becomes dependent on the decisions of one person, business reacts immediately.

When reporters asked US Treasury Secretary Scott Bessant why the tariffs were in place for only a few hours before Trump lifted them, he said he “didn’t know the reason for the pause in US tariff policy.” He said “Trump has created maximum negotiating leverage for America, and the pause gives time to make a deal.”

Raising tariffs on Chinese goods to 125% has stopped the supply of goods from China to the US, which will also increase consumer pressure on the authorities in both China and the US, so we expect solutions to the main problem of the tariff war.