After weeks of heightened tension and volatility, investors finally caught a break — at least for now. Global stock markets jumped after former US President Donald Trump announced a 90-day pause on his proposed tariffs. For investors, this was the signal they were waiting for — a sign that the worst-case scenario might not play out just yet. At time of writing today, the Straits Times Index (SGX: ^STI) is up 5.5%. Some of the top movers in the STI are the trio of banks; DBS (SGX: D05) is up over 8%, UOB (SGX: U11) up over 7%, and OCBC (SGX: O39) up over 6%.

Relief Rally — But Don’t Get Too Comfortable

This pause has triggered what market watchers call a relief rally — where markets surge simply because the news wasn’t as bad as feared. Investors hate uncertainty, and tariffs are the wild card weighing on sentiment. The pause gives businesses and investors breathing room to assess their next move....