#MarketRebound The markets suffer a huge hangover as tariff reality sets in

After one of the best days in Wall Street's history on Wednesday, a sense of sober realism was likely to return on Thursday. But few would have anticipated such a sudden and loud change in attitude.

Stocks plummeted and demand for safe-haven assets surged: gold soared 3%, reaching a new high, and the Swiss franc had one of its best days. Perhaps U.S. President Donald Trump's tariff truce on Wednesday was not as conciliatory as it initially seemed.

Tariffs caused dislocations in the U.S. Treasury bond market, raising long-term concerns. Global investors cling to volatility, even if a pause in tariffs is welcome. Trump's tariff pause does not change the fundamentals of a Fed that foresees future risks.