After Trump announced a suspension of tariff increases, global financial markets experienced a rare synchronized rise. The three major U.S. stock indices recorded their highest single-day increases in recent years: the Dow Jones Industrial Average rose by 7.87%, the S&P 500 skyrocketed by 9.51%, and the Nasdaq index surged by 12.16%, refreshing market perceptions. The technology sector emerged as the biggest winner, with Tesla's stock price soaring by 22% in a single day, while Apple and Nvidia recorded increases of 15% and 18%, respectively, as the capital market voted with real money for a policy shift.
The cryptocurrency market is also boiling, with Bitcoin breaking through the $83,000 mark, achieving a daily increase of 8.25%; Ethereum surpassed $1,680, with an increase of up to 13%. This cross-asset class rally reflects the market's strong expectation of a policy shift. Trump has thrown out optimistic rhetoric on social media, stating that 'the stock market record will continue', attempting to transform short-term policy dividends into long-term confidence support.
Yet behind the carnival, structural contradictions are fermenting. Although the U.S. bond market has seen a brief respite due to policy easing, the 10-year Treasury yield has fallen from its highs but remains in the dangerous zone of over 4.5%. PIMCO analysis points out that while the current U.S. bond sell-off has not triggered systemic risks, whether the Trump administration can establish an effective policy feedback mechanism will be a key variable determining the market's direction. The ongoing turbulence in the bond market is essentially a final interrogation by global investors regarding the credibility of U.S. economic policy.
