According to ChainCatcher news, according to 4E monitoring, the implementation of the US tariff policy on its three major trade partners has intensified investors' concerns about the escalation and expansion of the trade war. US stocks plunged across the board on Tuesday's opening, with the three major indices falling nearly 2% in early trading. However, as the US Commerce Secretary hinted that Trump might lower tariffs on Canada and Mexico, and investors bet again that the Fed would cut interest rates due to the risk of economic recession, the US stock market decline eased, with the Dow Jones closing down 1.55%, the Nasdaq down 0.35%, and the S&P 500 down 1.22%. Major tech stocks initially fell collectively, but turned to rise in the afternoon, with some individual stocks closing higher.
The cryptocurrency market followed the US stock market's decline after the opening, with Bitcoin briefly falling to a low of $81,500. However, as the US stock market's decline narrowed, the market also started a rebound. At the time of writing, Bitcoin was reported at $87,500, up 4.25% in 24 hours. After falling below $2,000, Ethereum returned above $2,100, up 5.8% in 24 hours. Over the past week, the cryptocurrency market has been significantly affected by news, with volatile fluctuations and increased trading difficulty, while market trading has been sluggish and on-chain activity has not shown significant changes.
In the foreign exchange and commodity markets, Trump's implementation of tariffs on Canada and Mexico caused the US dollar index to fall more than 0.9% during the day, hitting a new three-month low; crude oil fell for the third consecutive day, with US oil hitting a new low since December last year; the rise in safe-haven demand and the weakness of the US dollar supported a rise of more than 1.2% during the day.
The escalation of trade tensions has exacerbated market concerns about the US economic outlook. After the US implemented tariffs on Canada and Mexico, investors have increased their bets that the Fed will cut interest rates three times this year, each by 25 basis points, the first time since mid-December last year. In addition, the US Commerce Secretary hinted that Trump could announce a buffer period for tariffs on Canadian and Mexican goods as early as the 5th, and the market is closely watching whether this will bring a turning point.
