On February 4, the Trump administration announced over the weekend that it would impose tariffs on its three largest trading partners - Canada, Mexico and China, causing major turmoil in global financial markets. On Monday, Trump also said that the tariff measures on Mexico and Canada would be postponed for a month and negotiations would continue.
According to 4E monitoring, the tariff postponement led to a sharp reversal in the US stock market during the day, with the major indices quickly rebounding and the declines halving. The Dow Jones index briefly turned positive in late trading, ultimately closing down 0.28%, the S&P 500 index fell about 0.7%, and the Nasdaq fell 1.2%, having fallen more than 2% earlier in the day. Large tech stocks saw mixed results, with Tesla down 5.17%, Nvidia down 2.84%, but Meta up 1.2% to a new high.
The cryptocurrency market experienced a waterfall-like decline yesterday, but has since staged a strong rebound after the global tariff war risk was contained. Bitcoin has been rising continuously since last night's news of easing between the US and Mexico, and the signing of an executive order by Trump to establish a sovereign wealth fund, which could become a government channel for purchasing and holding cryptocurrencies, has greatly boosted market confidence, reaching $102,500 in the early morning and fully recovering yesterday's losses. Ethereum has returned to around $2,900, and the altcoin market has also seen a collective strong rebound, helping to restore the battered market sentiment.
In the foreign exchange and commodity markets, the US dollar briefly rose more than 1%, but the gains narrowed significantly to 0.6% after the tariff postponement between the US and Mexico; oil prices fluctuated with the tariff news, going through a pattern of first rising, then falling, and then rising again; safe-haven sentiment has generally lifted gold, with spot gold rising as much as 1.1% and breaking above $2,830, setting a new record high.
The recent tariff war has greatly rattled the market, with investors concerned that a full-blown trade war would disrupt global supply chains, drive up inflation and weigh on the economy. With the tariff war now on hold, the market has breathed a slight sigh of relief. This week is a busy earnings season for US stocks, with more than 1/5 of the S&P constituents set to report Q4 results, and the US January non-farm payrolls data will also be released on Friday. eeee.com is a financial trading platform that supports cryptocurrencies, stock indices, bulk gold, foreign exchange and other assets, and has recently launched a USDT stablecoin wealth management product with an annualized yield of 5.5%, providing investors with a potential hedging option. 4E reminds you to be aware of market volatility risks and allocate assets reasonably.
