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What Trump’s post on possible tariff talks reveals about the market’s psyche

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market moves : Stocks are off to a volatile start to the week. The ugly open Monday caused the S & P 500 to dip into bear market territory, meaning a decline of 20% from its high. There was a sharp rebound in the market shortly after 10 a.m. ET on the belief that the Trump administration was considering a 90-day pause in tariffs. But that was quickly shot down by the White House. The brief rally, although not based on factual information, showed investors what could happen in the market if there’s any tariff relief and President Donald Trump backs off from this manufactured sell-off. This could help explain why markets stabilized in midday trading. Tariff talk : The Trump administration’s appetite to make trade deals is a question we simply do not know the answer to. On the one hand, it’s hard to have confidence in deal-making when White House trade advisor Peter Navarro said Vietnam offering zero percent tariffs isn’t enough. The exact goals of the tariffs — are they a revenue generator or being used to reduce trade barriers — are ambiguous. On the other hand, in a post on Truth Social at 11:14 a.m. ET, the president said negotiations with countries other than China

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