Markets experienced a volatile but ultimately resilient April, as equities rebounded from early-month losses triggered by escalating trade tensions on “Liberation Day.” Initially shaken by President Trump’s tariff threats, investors regained confidence after the administration delayed most tariffs by 90 days—pushing their implementation to early July—and exempted key tech products from the proposed levies. While the speed of policy shifts has been unsettling, we find some reassurance in the administration’s responsiveness to market reactions and expect that dynamic to continue. Notably, in the lead-up to Liberation Day, the yield on long-term U.S. debt rose sharply, which we believe was a key catalyst in the administration’s decision to pause the tariff rollout. Despite a recovery in demand for both stocks and bonds later in the month, the dollar remained under pressure, reflecting continued foreign skepticism around U.S. trade policy.
Across corporate America, tariff-related uncertainty prompted many companies to withdraw or suspend forward guidance, underscoring how difficult it has become to forecast in the current environment. While we expect volatility to persist as markets continue digesting the pace of change, we believe the narrative will eventually shift. As clarity improves, investor focus is likely to move away from tariffs and toward the more constructive themes of tax cuts and deregulation. The longer this transition takes, the greater the risk that uncertainty will weigh on the broader economy and markets. However, we remain optimistic that this shift in focus will begin to materialize.
Information in this commentary is gleaned from third-party sources, and while believed to be reliable, is not independently verified. This content is not intended to be tax, legal, investment, or fiduciary advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Bernardo Wealth Planning recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. Past performance does not guarantee future results.