Market Resilience, the 90-Day Tariff Countdown, & Equity Index Annuities

This week on Money Wise, the guys recap another positive stretch for markets as the Dow climbed 1,204 points (3%), the S&P 500 rose 161 points (2.9%), and the NASDAQ jumped 595 points (3.4%). Despite ongoing tariff worries, the indexes continue to recover from earlier declines. Year-to-date, the Dow remains down 2.9%, the S&P 500 is off 3.3%, and the NASDAQ is still down 6.9%. April itself ended with mixed results — while the Dow and S&P were slightly negative, the NASDAQ managed a modest gain, highlighting how quickly sentiment has shifted. The Money Wise guys point to the market’s nine-day winning streak as a reminder of why emotional investing and market timing can be dangerous. Investors who stepped aside during the tariff turmoil likely missed a major rebound, reinforcing the team’s advice to stay disciplined and diversified.

Much of the discussion centers around the ongoing trade situation and its evolving impact on market dynamics. While uncertainty remains, the guys are cautiously optimistic that the harshest tariff measures may never materialize. They emphasize that with 60 days left in the current negotiating window, many global trading partners — especially China — appear motivated to reach deals. Recent headlines, such as China’s willingness to discuss fentanyl trade issues, fueled hopes of progress. The team also acknowledges political considerations, noting that with midterms approaching and tax policy goals on the table, President Trump may be inclined to soften tariff plans to avoid jeopardizing economic momentum. In short, while headline risk remains, the market’s resilience and improving breadth suggest investors should stay focused on fundamentals and avoid reacting emotionally to every twist in the news cycle.

The 90-Day Tariff Countdown

The Money Wise guys spotlight the ongoing 90-day tariff countdown, emphasizing how it continues to hang over the market and shape investor sentiment. While uncertainty remains, they express confidence that the harshest tariff measures announced on April 2 may ultimately never be implemented. With about 60 days left in the negotiation window, key trading partners—especially China—are showing signs of willingness to come to the table, evidenced by recent talks around sensitive issues like fentanyl. The hosts note that political pressures, including upcoming midterm elections and the desire to push tax legislation forward, may further motivate President Trump to ease or delay tariff plans. For now, the countdown keeps markets headline-driven, but the team believes an all-out tariff escalation remains unlikely.

In the second hour, the Money Wise guys discuss Equity Index Annuities. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.