U.S. stocks rose this week as investors evaluated President Donald Trump’s tariff delays and falling U.S. Treasury yields, offering relief to workers and businesses facing economic uncertainty. The S&P 500 climbed 2.1%, but families remain watchful amid a fragile recovery.

On May 27, Trump extended a 90-day tariff pause on European imports until July 9, following talks with Ursula von der Leyen. April’s “reciprocal” tariffs—10% on most nations, 145% on China—sparked a bond sell-off, pushing 10-year Treasury yields to 4.5%. By late May, yields fell to 4.36%, per market data, easing loan costs. The Dow Jones rose 1.78% to 42,343.65, and Nasdaq gained 2.47%, reflecting cautious optimism.

Laith Khalaf of AJ Bell said, “The pause gives markets stability, but tariffs still loom.” Nichola James of Morningstar DBRS noted, “Falling yields show bond market discipline at work.” The 30-year Treasury yield dropped 8 basis points to 4.96%, signaling renewed demand for U.S. bonds after April’s volatility.

April’s tariffs shook markets, with investors selling U.S. bonds over inflation and deficit fears, driving yields up as prices fell. The $29 trillion Treasury market faltered as investors turned to German bunds. China’s 84% retaliatory tariffs and 6.7% expected inflation, per a University of Michigan survey, heightened concerns. The tariff pause and yield drop have lifted stocks, with May consumer confidence data improving.

For people like Carlos, a Dallas mechanic with a 401(k), the rally brings hope. “April’s drop hurt my savings,” he said. Importers, like a Kansas City retailer, feel relief but stay cautious. Owner Anna said, “Paused tariffs lower my costs, but July’s uncertain.” Investors, stung by April’s 12% S&P 500 fall, are wary, with hedge funds unwinding bond trades, per analysts.

The impact is clear. April’s yield surge raised mortgage rates to 7%, burdening families. Falling yields now offer respite, but recession risks remain, with JPMorgan citing a 60% chance. Laurence Summers warned of a U.S. asset aversion in April. Trump’s May 23 threat of 50% EU tariffs and 25% on Apple keeps markets uneasy.

July’s tariff deadline looms. If tariffs resume, yields could rise, hiking borrowing costs. The Federal Reserve may intervene, with Deutsche Bank’s George Saravelos eyeing bond purchases. Stocks are up but below February highs, leaving workers and businesses hopeful yet cautious.

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