US equities remained calm on Wednesday despite the recent selloff caused by tariffs. Investors are hoping for intervention from either the Federal Reserve or President Trump to bring relief to the market. Trump's recent address showed no concern for falling stock prices, emphasizing that short-term pain is expected but will bring long-term gains. While his Cabinet is trying to do damage control by considering offers from Mexico and Canada, Trump remains firm on levies until action is taken against the flow of fentanyl. Despite the temporary calmness in the market, there is uncertainty about the threshold of pain that Trump is willing to endure. Analysts have different opinions, with some suggesting that a 5% single-day loss could trigger a policy change from Trump. Others believe that volatility, indicated by the VIX, will be a better indicator of a policy shift. Overall, the market is not convinced that this bout of volatility is over, and relief may not be seen until the VIX surpasses 27+. The Federal Reserve's next interest rate decision is scheduled for March 19.



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