Wall Street's major indexes rose high, buoyed by strong bank earnings, despite President Trump's new tariff threats against Mexico and Canada. The S&P 500 gained 0.88%, while the Dow increased by 1.24%. Investors display cautious optimism about a more nuanced tariff strategy, alleviating the immediate market fears of a trade war. However, concerns persist over high stock valuations and inflation, echoing the conditions preceding previous market downturns. Economists suggest the Federal Reserve may hold interest rates steady amidst enduring inflation, with the potential for rate cuts anticipated later this year.