The stock market's recent reaction to tariff headlines raises an interesting question: have equities already absorbed and moved past the week's trade policy fears?

Looking at price action, it seems investors are shifting focus faster than headlines suggest. While tariff announcements typically trigger sharp selloffs, we're seeing recovery patterns that point to something deeper—perhaps the market is already pricing in multiple scenarios, from negotiations to potential deal outcomes.

This isn't unusual. Major markets often front-run policy uncertainty, testing support levels before settling at new equilibrium. The key question for traders: is this a temporary bounce before renewed weakness, or have we genuinely moved into a new sentiment regime?

For those tracking asset allocation, the broader takeaway matters. When equity markets shrug off policy shocks this quickly, it typically signals either strong fundamentals underneath or that worst-case scenarios are already baked into valuations. Either way, the narrative is shifting from fear to opportunity hunting.