Markets Navigate 90‑Day Tariff Pause as Global Volatility Rises

The global financial system is on edge as the 90‑day U.S. tariff pause approaches its expiration on July 9. Over the past three months, markets have rebounded post-turmoil: U.S. equities surged, with the S&P and Nasdaq hitting records, but the dollar has weakened sharply, and gold is up 26% year-to-date.

Investors are now weighing the likelihood of another round of tariff letters, potentially hitting hundreds of countries with a 10% baseline and higher penalties on targeted sectors. Central banks and corporates remain cautious—stock market valuations are stretched versus fundamentals, and bond yields are volatile. Analysts warn that any tariff escalation could derail fragile growth, tighten financial conditions, and amplify inflation—though a delay or scaled-back approach could provide relief.