U.S. stocks jumped this week as investors sized up President Donald Trump’s tariff delays and falling Treasury yields, offering a lifeline to workers and small businesses caught in economic uncertainty. The S&P 500 climbed 2.1%, but families and entrepreneurs are still bracing for what’s next, their hopes tempered by lingering doubts.

On May 27, Trump extended a 90-day pause on tariffs targeting European imports until July 9, after talks with European Commission President Ursula von der Leyen. In April, his “reciprocal” tariffs—10% on most nations, up to 145% on China—ignited a bond market sell-off, pushing 10-year Treasury yields to 4.5%. By late May, yields eased to 4.36%, per market data, cutting costs for loans and mortgages. The Dow Jones rose 1.78% to 42,343.65, and Nasdaq gained 2.47%, signaling cautious relief.

Ed Yardeni of Yardeni Research said, “This pause pulls markets back from the edge, but tariffs keep everyone nervous.” Michael Field of Morningstar noted, “Lower yields are a breather, but we’re not out of the woods.” The 30-year Treasury yield dropped 8 basis points to 4.96%, showing investors returning to U.S. bonds after April’s turmoil.

April’s tariffs rocked global markets, with investors dumping U.S. bonds over fears of inflation and deficits, driving yields up as prices fell. The $29 trillion Treasury market wobbled as traders turned to German bunds. China’s 84% counter-tariffs and 6.7% expected inflation, per a University of Michigan survey, deepened the gloom. The tariff pause and falling yields have now lifted stocks, with May consumer confidence data showing a slight uptick.

For folks like Jamal, a Detroit factory worker with a 401(k), the rally means breathing room. “April’s market dip had me worried about retirement,” he said. Small businesses, like a Boise importer, feel the tariff pause but stay on edge. Owner Clara said, “I can keep prices steady now, but July’s a question mark.” Investors, stung by April’s 12% S&P 500 drop, are cautious, with hedge funds unwinding risky bond trades, per market analysts.

The stakes hit home. April’s yield spike pushed mortgage rates to 7%, squeezing first-time homebuyers like Clara’s son. Falling yields now ease some pressure, but recession fears linger, with JPMorgan pegging a 60% chance. Laurence Summers, former Treasury Secretary, warned April’s bond-stock sell-off showed a “loss of trust” in U.S. assets. Trump’s May 23 threat of 50% EU tariffs and 25% on Apple stirred fresh unease, keeping markets jittery.

What’s next depends on July’s tariff deadline. If tariffs kick back in, yields could climb, jacking up borrowing costs for families and governments. The Federal Reserve might step in, with Deutsche Bank’s George Saravelos suggesting emergency bond purchases. For now, stocks are up but still 11.2% below February highs. Workers like Jamal and businesses like Clara’s hold tight, hoping for steady ground in a world where tariffs and yields shape their futures.

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