This article is relevant.
**Market Reactions to Tariff Announcements**
On Wednesday, President Trump announced a 90-day pause on tariffs for most countries, leading to significant market reactions. The S&P 500 surged over 8.5%, while the Nasdaq experienced an 11% increase, marking its largest gain since 2008. The Dow rose by more than 2,700 points. Investors welcomed the pause and the reduced base tariff of 10% for compliant countries. However, China faced increased tariffs of 125%, contributing to market volatility.
**Impact on Cryptocurrency**
Bitcoin surged past $80,000, gaining over 6% in less than 24 hours, as traders moved capital from stocks to cryptocurrencies. Altcoins like Ethereum and XRP also saw double-digit rebounds. This shift indicates investors view Bitcoin as a hedge against trade uncertainties.
**Bond Market Turbulence**
The bond market experienced pressure, with 10-year Treasury yields rising to 4.38%, the largest three-day jump since 2001. This unusual movement suggests potential deeper market issues, as typically, bonds are seen as a safe haven during market stress.
**Investor Uncertainty**
The volatility index spiked above 60, reflecting ongoing market uncertainty. Former Treasury Secretary Larry Summers expressed concerns about the lack of a clear economic plan, warning that the 90-day tariff pause might be a temporary fix.
**China's Role**
China's increased tariffs and countermeasures could escalate the trade war, risking economic downturns for both nations. As markets react to these developments, the potential for continued volatility remains high.