US Stocks and Cryptocurrencies Surge Following Tariff Policy Reversal
US equities and cryptocurrencies experienced significant gains on Wednesday following President Trump's tariff policy reversal.
- The Dow Jones Industrial Average rose by 2,600 points.
- The S&P 500 increased by 9.1%, marking its largest intraday rally in five years.
- The Nasdaq Composite climbed nearly 12%, the highest daily gain since 2008.
- Bitcoin and Ethereum prices rose by up to 6% and 11%, respectively.
Trump announced a 90-day delay on reciprocal tariffs for all countries except China. The tariff on Chinese imports was raised from 104% to 125%. Treasury Secretary Scott Bessent confirmed that tariffs on other countries will remain at 10% during this period.
The 10-year Treasury yield decreased from 4.51% to 4.3% after the announcement. A successful 10-year auction signaled strong demand, with indirect bidders accounting for about 88% of accepted bids.
This shift in policy contrasts with earlier statements from the administration regarding the "Liberation Day" tariffs. Analysts have improved their outlook, with Apollo's chief economist and Goldman Sachs rescinding recession forecasts for 2025.