The U.S. stock market had a solid day thanks to some relief on the trade front. Trump announced a one-month delay on the 25% tariffs for auto imports from Canada and Mexico, which calmed investor nerves and gave the market a nice boost.
S&P 500 jumped 1.1%
Dow Jones climbed 485 points (~1.1%)
Nasdaq surged 1.5%
Auto stocks, in particular, had a strong rally—Ford and GM both shot up over 5% as investors welcomed the tariff delay.
While this move provided some short-term relief, the uncertainty around future trade policies is still hanging over the market. I am not sure how to look into the future for this. Should I book some profits?
If you’re sitting on decent gains, it might not be a bad idea to lock in some profits—especially on stocks that have run up sharply. That said, if you’re in for the long haul, some volatility is expected, and timing the market perfectly is nearly impossible.
The fundamental issues with trade policy haven’t changed, and there’s still a risk of tariffs coming back in a month. If the trade war escalates, this boost could reverse just as quickly. Watching how negotiations unfold will be key. If you’re comfortable with short-term trades, booking some profits here isn’t a bad idea. If you’re more of a long-term investor, dips from policy uncertainty could also present buying opportunities.