Stocks Rally as Trump Hits Pause on Tariffs

Markets roared after Trump’s latest move. On Wednesday, President Trump announced a 90-day pause on tariffs for most countries. The stock market reacted fast. The S&P 500 shot up more than 8.5%, while the Nasdaq jumped 11%—its biggest gain since 2008. The Dow added over 2,700 points. Investors cheered the pause and the lowered base tariff of 10% for compliant countries. Trump made the call right before markets opened, saying he wanted to calm the “yippy” reactions. Meanwhile, China got hit with even higher tariffs—raised to 125%. The mix of relief and escalation created sharp volatility across the board.

Bitcoin Surges as Tariff Drama Unfolds

Bitcoin didn’t stay quiet. As Trump’s announcement hit social media, BTC exploded past $80,000. That’s a gain of over 6% in less than 24 hours. Traders quickly shifted capital from riskier stocks into crypto, sensing opportunity amid the uncertainty. Altcoins followed the trend. Ethereum, XRP, Solana, and Dogecoin all posted strong double-digit rebounds. Crypto stocks like Coinbase, Riot Platforms, and MicroStrategy also spiked. This kind of move suggests investors are using Bitcoin as a hedge against trade war fallout and unpredictable monetary policy. Arthur Hayes, founder of BitMEX, believes yuan devaluation could drive even more Chinese investors into crypto—just like in 2013 and 2015. If that happens again, Bitcoin could keep climbing.

Treasuries and Bonds Rattle Amid Tariffs

The bond market also felt the pressure. Yields on 10-year Treasuries soared to 4.38%, the biggest three-day jump since 2001. That means bond prices fell sharply, alarming many investors. The 30-year yield also climbed, adding to worries. This spike confused the market. Normally, in times of stress, investors buy bonds for safety. But now, the opposite happened. Analysts say the rapid shifts may be tied to highly leveraged hedge fund trades unraveling. Experts warn that these swings could signal deeper problems. If foreign buyers like China start selling U.S. bonds, yields may rise even more. That would increase borrowing costs across the economy and hurt stocks even further.

Investors Face Tariffs Whiplash

For investors, this week has been a wild ride. One day the market crashes, the next it rallies. Trump’s tariff policy changes fast, and each announcement hits markets hard. Even Goldman Sachs flipped its recession forecast twice in one afternoon. Former Treasury Secretary Larry Summers isn’t convinced the danger is over. He says the White House is improvising, not following a clear economic plan. Many fear the 90-day pause is just a short-term fix and that deeper damage to the economy is already done. The volatility index (VIX) spiked above 60 before dropping to 37.5—still very high. That tells investors that uncertainty remains. As long as tariffs stay on the table, sharp moves in the stock market are likely to continue.

China’s Role in the Tariffs Fight

The biggest question is what happens with China. While Trump offered relief to 75 countries, China got hit harder. A 125% tariff now applies to Chinese imports. In response, China has announced counter-tariffs that could escalate the trade war. If this back-and-forth continues, both economies could suffer. The risk of a self-inflicted recession is growing. Bonds, stocks, and Bitcoin are all reacting to the same stress signals. As investors try to make sense of it all, one thing is clear: markets hate uncertainty. For now, the pause offers a brief break. But if the tariff war heats back up, more volatility is coming—for the stock market, Bitcoin, and the entire economy.