The U.S. continues to follow a familiar scenario: swinging the negotiation pendulum, Washington alternates sharp measures with signals of easing, trying to control market reactions and the agenda. Treasury Secretary Bessent's statement about possible de-escalation of the conflict with China was yet another attempt to soften the consequences of his own tough rhetoric — against the backdrop of just announced tariffs of 145% on Chinese goods. Markets reacted quickly, but not so much with enthusiasm as with an attempt to restructure for the new phase of the game.
On Tuesday, U.S. stocks surged sharply: hopes for reduced tension between the U.S. and China after the previous day's crash supported investor optimism. The S&P 500 and Nasdaq indices rose by 2.5%, while the Dow gained 1,016 points. The catalyst was Bessent's statements at a summit organized by JPMorgan, where he called the current tariff confrontation "unsustainable" and indicated that the course would shift towards resolving the conflict. However, by the end of the day, enthusiasm waned: Bessent acknowledged that official negotiations with China had not yet begun and warned that the process would be "prolonged."
Yields on U.S. government bonds have gone down: ten-year notes fell below 4.38%, reacting to the rhetoric of easing. Investors temporarily reduced demand for safe assets, although the overall tension caused by the aggressive trade policy of the U.S. remains in force. The change in tone from the Treasury only partially slowed down the sell-off of dollar assets, which was provoked by the escalation of the tariff war and public pressure on the Fed from the White House. President Trump's attacks on Federal Reserve Chairman Jerome Powell remain a factor of instability and amplify market volatility.
The technology sector led the rebound: Tesla shares rose by 4.6% in anticipation of reporting, despite the company being down 40% since the beginning of the year. Shares of Apple, Amazon, and Meta also showed growth. Among corporate reports, General Electric stood out with a 6.1% increase after publishing results. Verizon, on the contrary, showed weak dynamics, failing to meet expectations.
Gold, having reached a record level of $3500 per ounce, corrected below $3400. Investors reacted to Bessent's rhetoric by reducing demand for protection, but the pullback remains moderate. Confidence in the dollar and American assets is still under pressure — uncertainty surrounding tariffs, geopolitics, and the future course of the Fed has not disappeared. In these conditions, any attempt to calm the markets is perceived more as a tactical element than a change in course.
As before, the U.S. administration continues to play on the contrast: first raising the temperature, then taking a step back. This approach keeps the markets in a state of constant adjustment, but simultaneously undermines resilience and trust in long-term stability. Another swing of the pendulum is not a signal for reconciliation, but rather a breather before the next wave of pressure.
Earlier ("Trump's Tariff Pendulum or How the White House Restructures Global Trade") we have already discussed such a strategy in detail — when the U.S., swinging the negotiation pendulum, combines aggression with concessions, creating the illusion of manageability while maintaining pressure.
At this stage, it can be said that the Trump administration is not changing course, but merely adjusting the presentation — trying to manage the consequences of its own decisions. The processes triggered by tariffs are gaining momentum, affecting not only China but also domestic markets. And now the task of the White House is not just to increase pressure, but to prevent it from spiraling out of control. This is the essence of the strategy: to create pressure — and control its level through targeted signals to the market, while not losing the initiative in negotiations.