The Federal Reserve calmed markets by signaling two interest rate cuts in 2025, although the stock rally was short-lived. Market strategists believe that unresolved issues from the previous month are still affecting the stock market.

Dennis Debusschere, president of 22V Research, mentioned that with the Fed meeting over, attention is shifting to President Trump's tariffs and potential reciprocal duties. The uncertainty surrounding how these policies might impact corporate profits is a major concern for the market amid recent declines.

Tariff concerns in the market are multifaceted, encompassing which companies will be affected, possible counter-tariffs, and the ripple effects on prices. The fear is that these uncertainties could dampen consumer spending and economic activity.

Investors are struggling to adapt to the unpredictable changes amid the tariff announcements. President Trump has postponed most tariff plans until April 2, which he referred to as "liberation day in America." However, the market remains uncertain about the implications.

Piper Sandler's chief investment strategist, Michael Kantrowitz, emphasized that policy uncertainty, heightened by the tariff issue, was a significant driver of the recent market downturn. Clarity on these factors is essential for market stability and investor confidence.