US Stocks and Cryptocurrencies Reverse Early Gains Amid Tariff Uncertainty
US equities and cryptocurrencies experienced a downturn on Tuesday after initial gains. Key points include:
- The S&P 500 declined by approximately 2% and the Nasdaq Composite by about 1% after rising over 4% earlier.
- Bitcoin and ether fell by 4% and 6%, respectively, with Bitcoin down over 12% since President Trump's "Liberation Day" announcement.
- The early optimism stemmed from hopes of tariff negotiations, but these diminished when Trump confirmed high tariffs on Chinese imports would take effect unless Beijing rescinds its retaliatory measures.
- Commerce Secretary Lutnick stated that new tariffs cannot be postponed.
- Trade representative Greer indicated nearly 50 countries are discussing “reciprocity,” though expectations for a deal with China are low.
- This week, key inflation data will be released, with the likelihood of the Federal Reserve cutting interest rates in May rising to 51% from 19% last week.