After Trump announced a suspension of tariff increases, global financial markets experienced a rare synchronized surge. The three major U.S. stock indices recorded their highest single-day gains in years: the Dow Jones Industrial Average rose by 7.87%, the S&P 500 soared by 9.51%, and the Nasdaq Composite surged by 12.16%, reshaping 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 gains of 15% and 18%, respectively, as the capital markets voted with real money for a policy shift.
The cryptocurrency market is also boiling over, with Bitcoin breaking through the $83,000 mark, recording a single-day gain of 8.25%; Ethereum surpassed $1,680, with a gain of 13%. This broad rally across asset classes reflects the market's strong expectation of a policy shift. Trump expressed an optimistic view on social media, stating that 'the stock market record will continue,' attempting to transform short-term policy dividends into long-term confidence support.
However, beneath the revelry, structural contradictions are brewing. Although the U.S. Treasury market experienced a brief respite due to policy easing, the yield on the 10-year Treasury bond fell from high levels but remains in a dangerous range above 4.5%. PIMCO analysis points out that the current sell-off in U.S. Treasuries has not triggered systemic risk, but whether the Trump administration can establish an effective policy feedback mechanism will be a key variable determining the market's direction. The ongoing volatility in the bond market is essentially the ultimate test of global investors' confidence in U.S. economic policy.
