International markets have perked up since Monday’s announcement of a 90-day break in the trade tariff battle between the United States and China.
This pause in hostilities between the world’s two biggest economies has seemingly diluted the immediate threats to global growth that have been hanging over financial markets for much too long. And the respite has injected a new dose of confidence into the markets, with the major asset classes—stocks, cryptocurrencies, and commodities—clearly inching back toward their record high values.
Even if the overall macroeconomic environment is still somewhat hazy, the truce has done enough to restore the old bullish sentiment across crucial sectors. Whether from Wall Street, digital assets, or safe-haven commodities like gold, markets are once again dancing with historic price levels.
S\&P 500 Closes in on Record Despite Volatility
The S&P 500, which is among the most closely followed stock market indexes in the world, currently has a level of 5,953.57. This is just 195.86 points (3.27%) below where it was when it set a record high of 6,147.43 on February 19, 2025.
The U.S.-China tariff truce is a big deal for investors. It seemed like a de-escalation to the folks I spoke with yesterday. They are seeing it as a way for corporations to recalibrate their businesses and for the global economy to recalibrate itself, all without the overhang of new tariffs on imports and exports. Meanwhile, there’s growing optimism that the Fed will take a more dovish tone and that this may support risk assets in the second half of the year.
It’s close to an all-time high, and that means investors are feeling pretty good about things. They’re pricing in at least a moderately favorable set of outcomes between now and year-end.
Those outcomes would likely include solid corporate earnings, as inflation eases up enough to allow companies to start seeing profits again. And when we say “breakout,” we mean, buddy, they’re not kidding. Internationally, investor sentiment couldn’t be much better, especially for developed-market equities.
Bitcoin Surges Back Toward $110K High
When it comes to digital asset resilience, nothing compares to Bitcoin. The leading cryptocurrency has consolidated since its January 2025 highs yet now trades at an impressive $103,502, just 5.33% off the January 20, 2025 record of $109,026.02.
The price movement of Bitcoin echoes a larger trend: institutional adoption is up, and the demand for decentralized stores of value is booming. On the geopolitical front, easing U.S.-China trade tensions have lessened the immediacy of global economic risk, and that usually helps do away with crypto asset volatility. At the same time, anticipation of the 2024 Bitcoin halving event continues to push bullish momentum, with the prospect of ever fewer Bitcoins to be mined in the future serving to underpin ever higher prices.
Even though it seems to be at the peak of a monetary policy cycle, analysts remain divided over Bitcoin’s next move. Some see it starting a new leg up if overall market conditions stay favorable and it gets more regulatory clarity. But many other analysts say crypto in general, and Bitcoin in particular, could stay range-bound for a long time without fresh catalysts.
Gold Holds Strong as Geopolitical Hedge
Gold, which has long been viewed as the ultimate safe-haven asset, also is trading near historic highs. The current price of gold sits at $3,196.80 per ounce, which is just 9.79% below its all-time high of $3,509.90, set on April 22, 2025.
The yellow metal has benefitted from a complex mix of conditions, including not only buying by central banks but also a number of other factors, like currency instability in emerging markets and a heightened taste among investors for non-correlated assets.
While the tariff ceasefire has lessened immediate trade concerns, the bigger picture—featuring unresolved geopolitical tensions in places like Eastern Europe and the Middle East—comports with gold’s ascendance, because it makes the metal all the more appealing as a long-term store of value. With central banks the world over holding huge quantities of gold and individual investors hunting for reliable hedges against currency devaluation, the yellow metal figures to enjoy untroubled demand.
The prospect of gold regaining its most recent height may hinge on a couple of factors—if real interest rates will hold steady or fall, and how responsive the major global economies will be to the unfolding trade and monetary-policy adjustments in the months ahead. When gold slumped to around $1,080 last December, it was mainly because real rates had moved up significantly—by about 1.5 percentage points—from their July 2015 low.
Conclusion: A Calm Before the Next Storm?
There is no denying that the 90-day tariff truce between the U.S. and China has calmed investors’ nerves and provided a window for risk assets to regroup. With stocks, Bitcoin, and oil all near their respective all-time highs, markets seem to be pricing in a relatively stable short-term outlook.
Yet, how long this optimism lasts will depend on whether fundamental, structural problems—the sort that persist even through good times—can be kept under control. Right now, a lot of day-to-day market action seems to be driven more by liquidity and technical factors than by a fundamental improvement in the economy. If that changes, let’s hope it changes to the upside.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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