Markets are weird.

On Monday, Trump hinted that his long-threatened tariffs might not be as all-encompassing as many feared. Cue the rally: US stocks surged, Asian markets followed, and investor sentiment did a 180.

But here's the thing — this isn’t just about tariffs. It’s about how uncertainty, inflation, and investor expectations are colliding in real time. And if you're investing without a framework, this kind of news cycle can send your emotions (and portfolio) spinning.

Let’s break it down.

Markets Crave Clarity — Not Just Good News

The Nasdaq 100 jumped 2.2%. The S&P 500 rallied 1.8%. Tesla soared 12%. Even overseas indexes like Japan’s Nikkei and Australia’s ASX caught a bid.

Why?

It’s not that the tariffs are gone. It’s that they might not be as bad as expected.

Investors were bracing for a full-on trade war. Instead, Trump hinted at more selective enforcement and potential exemptions for certain countries. That kind of signaling may seem subtle, but in market terms, it’s the difference between tightening your seatbelt and bracing for impact.

Wall Street read the tea leaves and exhaled.

Meanwhile, the Fed Is Paying Close Attention

While investors cheered, central banks started recalculating.

Atlanta Fed President Raphael Bostic publicly trimmed his interest rate forecast for the year — from two cuts to just one. The reason? Tariffs raise prices. Higher prices mean stickier inflation. And sticky inflation means the Fed can’t cut rates as freely as markets might hope.

That one shift alone changes the game.

Lower interest rate expectations often fuel risk-taking. Fewer rate cuts = tighter financial conditions = a more cautious environment for stocks, especially in sectors like tech where valuations are already stretched.

So yes, the rally happened — but it may not have staying power if inflation surprises to the upside.

China Is Easing — Quietly, But Meaningfully

While the US battles inflation risk, China’s central bank is easing credit conditions.

This week, the People’s Bank of China unveiled a new system for pricing its one-year loans to banks, offering more flexibility in the medium-term lending facility (MLF). The goal? Stimulate activity without an outright rate cut.

This matters because China has been under immense economic pressure post-COVID, and a more accommodative stance there can create a global ripple effect — especially in emerging markets, commodities, and industrials.

It’s also why ETF flows into Chinese stocks ticked up recently. A global investor sees that policy shift and says, “Maybe this isn’t the bottom anymore.”

This Is Not the Time to Wing It

Let’s zoom out.

Trade policy is shifting. Inflation remains a wild card. Central banks are split on their next moves. Meanwhile, headlines flip sentiment by the hour.

You need more than a gut feeling to navigate this.

The investors who win in these environments are the ones who have rules-based strategies — frameworks that adapt to changing data without being whiplashed by every press conference or policy headline.

That’s where automated investing comes in.

Why Strategy > Headlines (Every Time)

At Surmount, we believe real investing power comes from being consistent — not from guessing right once.

Our platform lets you automate proven investment strategies inside your existing brokerage account. That means:

• No manual trades

• No emotional reactions

• No chasing headlines

In a market where news can spark rallies — or reversals — having a clear, automated strategy can be your biggest advantage.

Because let’s be honest: The market isn’t done with surprises.

Disclaimer: The information presented is for educational purposes only and not an offer or solicitation for any specific investments. Investments involve risk and are not guaranteed. Consult with a financial adviser before making any investment decisions. Past performance does not guarantee future results.