On Tuesday, stock market traders responded positively as they absorbed the developments from trade talks in London, interpreting the tariff situation as potentially not resulting in severe consequences. This optimism led to an uptick in stock prices, with the S&P now sitting just 1.7% from its February peak and the Nasdaq being 2.3% off its December high. Keeping an eye on these movements will be essential for understanding the market’s trajectory as traders continue to reassess the implications of ongoing trade discussions.