Hello everyone, today we are going to talk about an unprecedented market storm, which hides not only the conflict of Sino-U.S. trade but also the sudden downturn of leaders' emotions, delivering a fatal blow to the global capital market.
The cause of the matter is very simple - Trump's series of policy responses to China, which caused the U.S. stock market to crash directly, is simply a 'political bomb.' While he shouted about raising taxes and 'going to war' with China, the market hadn't had time to react, and suddenly the panic among global investors began to spread, with the entire stock market plummeting like a runaway train.
The market value of the seven major technology giants in the U.S. evaporated by a staggering $5 trillion in just a few hours, which is simply astronomical. At least 1.5 million investors globally were liquidated in this wave of decline, with accounts going directly to zero! If you are a trader, you may have lost confidence in the market in that instant.
Unfortunately, Trump clearly did not realize that this 'self-manufactured disaster' would plunge the American economy and investors into tremendous uncertainty. His impulsive decision led to extreme panic in the U.S. stock market and among global investors within just a few hours. You can feel that what the market fears most is not tariffs or sanctions, but the loss of control of leaders' emotions. Such emotional policies are often more dangerous than any economic indicators or policy adjustments.
What is even more surprising is that less than eight hours later, Trump suddenly changed his tone, saying he was willing to 'meet with China.' This shift in attitude left everyone stunned. You can imagine that every investor in the market is pondering which version of Trump we are seeing today. Just yesterday, he was roaring about 'cutting ties,' but today he has suddenly become weak and powerless. This reversal has raised serious doubts about the future of U.S. policy.
To be honest, the chaos behind this policy actually exposes the fragility of the American economy. With high inflation and soaring fiscal deficits, internal contradictions are also intensifying. Many policy decisions are actually attempts to divert public attention, but the results are just the opposite. Trump's 'tax counterattack' is actually shifting domestic dissatisfaction, which has directly plunged the global market into a panic cycle.
So, for friends who invest, today we need to reflect that the market is not only influenced by economic data; emotional decisions can also cause huge fluctuations. We must remain calm and learn to find stable signals from the changes in global political and economic circumstances, rather than simply being led by 'leaders' emotions.' Especially in the current globalized environment, a policy trend or a press conference can cause the market to turn upside down.
Remember, this is the real risk of the market: it is not entirely based on logic and data, but rather on the intertwining of emotions, decisions, and external pressures. Before taking any action, we must clearly understand that market uncertainty comes not only from numbers and charts but also from 'storms' that ignore rational decision-making.