Global markets fell into a panic selling mode again on Monday, with everyone on edge:
- U.S. stock futures opened with a sharp drop, with Nasdaq futures down 5%;
- Gold prices fell more than $40, dropping below the $3,000 mark;
- Oil prices fell more than 4%, with U.S. crude dropping below $60;
- The U.S. dollar index fell by 0.34%, returning to a downward trend.
1. Today's decline is more driven by 'disillusionment of hope'.
People hoped that someone in the Trump administration would make some comments over the weekend indicating that negotiations might take place or that tariffs could change, but they seem to be sticking to their guns. Neither the White House nor the Federal Reserve made any soothing remarks to the market.
Trump shared a video on Truth Social hinting that his tariffs are intended to deliberately crash the stock market to force the Federal Reserve to cut interest rates. This post sparked a global debate about whether Trump's tariffs are part of a permanent new tariff regime or merely a negotiation tactic to induce concessions from other countries to lower tariffs.
U.S. Commerce Secretary Ross stated on Sunday that tariff measures would still be implemented within days or weeks and would not be postponed.
2. 'Panic selling' is because 'the declines were too large', leading investors to receive margin calls somewhere, forcing them to sell other assets to meet margin requirements, resulting in 'everything is down'. In such market sell-offs, panic and forced selling due to margin calls may last for some time. A very real negative event is not necessarily required, as subsequent sell-offs could occur on their own.
3. People are worried that the worst is yet to come, fearing a market crash. Since the announcement of tariffs on April 2, fear has been driving market trends, with many investors concerned about the worst-case scenario of a prolonged trade war. Unless Trump quickly reaches agreements with some countries to lower tariffs, this sentiment will remain fragile.
Another week filled with volatility and attention-grabbing headlines has arrived.#加密市场回调 $BTC
