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 daily increases in recent years: the Dow Jones index rose by 7.87%, the S&P 500 soared 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, and Apple and Nvidia recording increases of 15% and 18%, respectively, as the capital market votes with real money for a policy shift.
The cryptocurrency market is boiling over, with Bitcoin breaking through the $83,000 mark, achieving a daily increase of 8.25%; Ethereum has surpassed $1,680, with a rise of up to 13%. This broad-based rally across asset classes reflects the market's strong expectations for a policy shift. Trump has thrown out optimistic remarks on social media, claiming that 'the stock market record will continue,' in an attempt to convert short-term policy benefits into long-term confidence support.
However, behind the celebration, structural contradictions are brewing. Although the U.S. Treasury market has experienced a brief respite due to policy easing, the 10-year Treasury yield has fallen from its highs but remains in a dangerous range above 4.5%. PIMCO analysis indicates that while the current sell-off in U.S. Treasuries 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 fluctuations in the bond market are essentially the ultimate test of global investors' trust in U.S. economic policy.
