U.S. Stock Market in Turmoil, Bitcoin Hovering at 83K: Has Trump Made America Great Again?
After Trump’s Radical Tariff Policy Announcement, US Stocks Plummet
Following President Trump’s announcement of radical tariff policies, US stock markets saw significant losses. On Thursday, the S&P 500 index fell by 4.84%, while the Nasdaq index dropped by 5.97%, marking the largest declines since 2020. Bitcoin hovered around $83K, and Ethereum remained stable around $1,800.
About $2.5 Trillion Evaporated from S&P 500, Making the US the Biggest Loser
Concerns over President Trump’s new round of massive tariffs potentially leading the economy into recession resulted in the S&P 500 index losing approximately $2.5 trillion on Thursday.
Companies most reliant on overseas manufacturing suffered the greatest losses. Apple, whose devices sold in the US are largely produced in China, saw its stock price decline by 9.3%. Companies with manufacturing ties to Vietnam, including Lululemon and Nike, experienced stock price drops of over 9%. Retailers Target and Dollar Tree, filled with products sourced from outside the US, saw their stock prices fall by more than 10%.
US assets emerged as the biggest losers. The S&P 500 index dropped by 4.84%, and the US dollar index also fell significantly. In contrast, impacts in other regions were smaller: the Asian stock market composite index fell by less than 1%, the European Stoxx 600 index dropped by 2.6%, while the euro rose approximately 1.6% against the dollar, and the dollar fell to a six-month low of 146 against the yen.
Dollar Declines as Trump Shouts: Make America Great Again
Trump has positioned tariffs as tools to uphold US power, revive domestic manufacturing, and gain geopolitical concessions. However, economists argue that the short-term outcomes of his measures could lead to rising prices in the US, slowed economic growth, and even potential recession.
Nevertheless, Trump expressed his satisfaction on social media, stating, “The surgery is over! The patient has survived and is recovering. Predictions suggest that the patient will be stronger, bigger, better, and more resilient than before. Make America Great Again!”
Amid Global Risk Asset Sell-off, Dollar Continues to Decline
In the context of a global risk asset sell-off, the continuous decline of the dollar has sparked intense debate about whether it can maintain its status as a safe haven during turbulent times.
The Bloomberg Dollar Spot Index plummeted by as much as 2.1% on Thursday, marking the largest intraday decline for the index since its launch in 2005. Options data indicate that for the first time since September of last year, investors are taking a pessimistic view on the dollar’s trajectory over the next month.
Market Watches Non-Farm Data and Powell’s Speech
The highly touted “America First” trade—investing in assets that outperform those in the rest of the world—is reversing as concerns grow that the largest tariff increases in a century will hinder economic growth.
The March non-farm employment report is set to be released tonight. Last week, initial jobless claims in the US fell by 6,000, indicating that the labor market remains stable ahead of potential data volatility due to import tariffs.
The market will also focus on Fed Chair Powell’s speech later. According to the CME FedWatch Index, traders’ pessimism about the US economic outlook has significantly increased the likelihood of emergency interest rate cuts, with the market currently pricing in the possibility of four rate cuts this year, compared to only two expected a month ago.
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