NEW YORK >> Wall Street edged higher in a quiet Tuesday after roaring the day before on hopes that President Donald Trump’s tariffs may not be as sweeping as earlier feared.

The S&P 500 added 0.2% after jumping 1.8% Monday to one of its best days of the last year. The Dow Jones Industrial Average inched up by 4 points, or less than 0.1%, and the Nasdaq composite rose 0.5%.

U.S. stocks have recovered a chunk of their losses since falling 10% below their all-time high earlier this month, for their first “correction” since 2023. The S&P 500 is now down 6% from its record, and that drop has left the market looking less expensive than before, which had been a major criticism following its euphoric rise in earlier years.

But strategists along Wall Street warn that more sharp swings are still likely on the way with an April 2 deadline looming. That’s what Trump has called “Liberation Day,” when he will begin tariffs on trading partners that he says will roughly equal what he sees as the burden each of them puts on the United States. Monday’s spurt for Wall Street came on hopes that Trump’s “reciprocal” tariffs may be more targeted than had earlier been feared.

“We think markets are underplaying the risk of a tariff shock in early April,” according to Ajay Rajadhyaksha, global head of research at Barclays. He points not only to traders’ expectations for upcoming volatility in the stock market but also to the values of the Mexican peso and Canadian dollar, which haven’t weakened substantially from the last postponement of tariffs.

Even if Trump’s tariffs do end up being less painful for the global economy than feared, all the dizzying talk about them has already soured confidence among U.S. households and businesses. The fear is that could lead them to cut back on their spending and freeze the economy.