Investment Weekly

Chart of the week – Stocks since ‘liberation day’

It took five weeks, but US stocks have finally recovered from the global market sell-off sparked by the ‘liberation day’ tariff proposals in early April. The relief rally has played out amid falling volatility, still-high valuations and profits expectations, tighter credit spreads, and a sense of calm in Treasury bonds. Put together, it suggests that recession isn’t priced anywhere in investment markets right now. But policy uncertainty remains ultra-high, and the July deadline to restore reciprocal tariffs still looms. So, what has driven this rebound?