Wall Street Wavers Amid Tariff Pause Speculations

Major stock indexes fluctuated after reports suggested a potential 90-day tariff pause by President Trump, excluding China. Despite initial sharp declines, the Dow, S&P 500, and Nasdaq made a recovery. The dollar strengthened, with traders anticipating possible Federal Reserve interest rate cuts amid recession fears.

On a volatile Monday, major stock indexes experienced fluctuations with the White House refuting claims that U.S. President Donald Trump considered a 90-day tariff moratorium for all countries excluding China. This denial came as the U.S. dollar strengthened significantly.

Wall Street began the day with significant losses but rebounded following an interview where White House economic adviser Kevin Hassett mentioned Trump's consideration of a tariff pause. The Dow Jones Industrial Average dropped by 469.46 points, or 1.23%, settling at 37,845.40. The S&P 500 and Nasdaq also fell by 28.89 points and 3.62 points, respectively.

Globally, MSCI's index declined by 12.42 points, with the pan-European STOXX 600 experiencing a decrease of 2.58%. The looming threat of recession led to market speculation on the Federal Reserve potentially slashing interest rates this year. Concurrently, the dollar index rose, with the dollar strengthening against major currencies, further emphasizing uncertainty in the market.

(With inputs from agencies.)