Despite ongoing confusion over President Donald Trump's tariff policies, U.S. equities may continue to rally, according to a new client note from Barclays. Analysts led by Emmanuel Cau believe markets could “climb the wall of worry until something breaks,” highlighting the temporary 90-day pause on most of the new levies as a window for diplomacy.

• S&P 500 closed Tuesday: 5,606.91 (−0.8%)

• Market sentiment: Optimistic ahead of U.S.-China trade talks in Switzerland

• Current tariffs: 10% base rate on multiple goods + sector-specific duties on steel, aluminum, autos

The market has regained some ground after Trump's initial “Liberation Day” tariff shock in April. With trade negotiations underway and the White House easing off the throttle, investor sentiment is cautiously improving.

However, macroeconomic signals remain mixed: Q1 GDP contracted, inflation expectations ticked up, yet consumer spending and job growth have held strong.

For a deeper understanding of how the economy is tracking in real time, you can explore the Economics Calendar — featuring up-to-date GDP, inflation, and employment metrics.