Piper Sandler analyst says US stocks could gain bullish momentum from Trump's tariff announcement

The US stock market began to recover from a significant drop driven by expectations of the introduction of new import tariffs on April 2. The S&P 500 Index rose slightly after falling more than 1.5% in early trading on Monday.

According to Craig Johnson of Piper Sandler, such momentum may be a sign of a double bottom pattern in the market. This would mark the end of the current downtrend and the beginning of a new uptrend. Technical data supports the likelihood of such a scenario, Johnson says.

Last week's trading volume across the NYSE, Nasdaq and American Exchange was at its lowest level since the week ended January 14. Investors are in a wait-and-see mode ahead of Donald Trump's announcement on tariffs, and this creates uncertainty in the market, the analyst notes.

Johnson believes that the American president's speech on April 2 will remove this uncertainty, attract investors back to the stock market and increase the securities’ prices. He adds that April is traditionally a bullish month for the S&P 500.