U.S. stocks rebounded this week on optimism that trade tensions between the United States and China will ease in the coming days once the two trading partners initiate negotiations and reach a deal. However, the rebound came after Wall Street suffered weeks of turmoil that saw major indexes enter correction territory on fears of a large-scale trade war.

Earlier this month, President Donald Trump announced a 90-day halt on reciprocal tariffs, which brought some temporary relief to investors. However, concerns over the economy’s health are far from over and trade talks between the United States and its trading partners are at a nascent stage.

Volatility in the markets could thus continue for a longer period. Given this uncertainty, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks are Univest Financial Corporation UVSP, ACNB Corporation ACNB and QUALCOMM Incorporated QCOM.

Uncertainty Over Economy’s Health Continues

Investor sentiment got a boost this week after both Trump and Treasury Secretary Scott Bessent said that trade tensions could ease as the White House is ready to start negotiations with China. Both Trump and Bessent also said that the current 145% tariffs on Chinese goods would come down substantially once a trade deal is reached.

Also, investors’ worries flared up after Trump recently slammed Federal Reserve Chairman Jerome Powell for not initiating interest rate cuts to help the economy from slipping into a recession. He even called for Powell’s firing, igniting fears among investors that the central bank could lose its autonomy. However, Trump assured investors on Tuesday that he has no plan to fire Powell.

Investors breathed a sigh of relief after this and markets have somewhat recovered. However, the recent surge comes after weeks of turmoil on Wall Street that saw the Nasdaq enter correction territory and the S&P 500 fall into bear market. The S&P 500 came out of the bear market on Wednesday but the crisis is far from over.

The halt in tariffs is temporary, and investors are still clueless about how the new tariffs will shape up after negotiations. Also, China has yet to show any interest in trade talks with Washington, and it’s unclear whether negotiations will start anytime soon. Also, despite a decline in inflation in March, the Federal Reserve is still undecided on when to resume rate cuts. This could keep markets volatile for a longer period.

3 Stocks That Recently Declared Dividend Hikes

Given the ongoing uncertainty, investing in stocks that pay dividends could be a wise decision. Such companies usually remain stable, consistently paying out dividends while sustaining profitability through strong business strategies. In a fluctuating market, companies that provide significant dividend payments often outperform those that do not.