Institution: Buy-the-Dip Sentiment May Persist Until the End of the Tariff Truce

On May 2nd, Chris Zaccarelli, the Chief Investment Officer of Northlight Asset Management, stated that the market exhaled with relief today as the employment data turned out to be better than anticipated. Although concerns about an economic recession still hover in the air, the momentum of buying on dips may persist, at least until the end of the tariff suspension. "We have already witnessed how the financial markets would respond if the Trump administration persists with its initial tariff plan. Therefore, unless they adopt a different approach when the 90-day pause expires in July, we will observe a similar market trend as in the first week of April. If the Trump administration adjusts its tariff policy, alters the ultimate goal, and exempts unreasonable tariff levels, then the real economy can readjust, and the market will stabilize. However, we are not yet out of the difficult situation." (FXStreet)