4E: Trump's tariffs hit the market hard, U.S. stocks and cryptocurrency markets plummet
ChainCatcher news, on Monday Trump confirmed that the tariffs on Mexico and Canada will take effect on March 4, emphasizing that there is no room for negotiation with the two countries, causing heightened market panic. According to 4E monitoring, the three major U.S. stock indices collectively closed lower, with the Dow Jones down 1.48%, the S&P 500 down 1.76%, marking the largest decline of the year, and the Nasdaq down 2.64%, erasing gains since the November election. Tech stocks led the decline, with Nvidia plummeting 8.69%, hitting the lowest closing price since September 2024.
The cryptocurrency market followed the U.S. stock market with a significant drop. On Sunday, Trump posted about promoting a national cryptocurrency reserve, causing a collective surge in the market, with Bitcoin briefly reaching $95,000, then pulling back, and fluctuating lower amid market skepticism about Trump's strategic reserve leaning towards altcoins, raising concerns about "advertising space." On Monday, as the tariff hammer was raised, hopes for a last-minute tariff agreement between the U.S. and Mexico/Canada were dashed, leading to another market plunge. By the time of writing, Bitcoin had dropped 10.49% to $83,384, below the level before Trump's tweet, while Ethereum fell 16.83% to $2,038, hitting a new low.
In the forex commodities sector, with tariffs looming and weak U.S. economic data, the dollar index softened, falling 1%; Trump's pressure proved effective as OPEC+ unexpectedly announced plans to restore production increases starting in April, leading to a sharp decline in oil prices, with U.S. oil down nearly 2%; the weakening dollar resonated with tariff concerns, causing spot gold to fluctuate upward throughout the day.
Previously, the market had hoped that Trump's threats regarding tariffs on Mexico and Canada were merely bluster, but with confirmation, the trade war situation has intensified. Additionally, U.S. manufacturing activity growth in February approached stagnation, adding signs of stagflation to the economy. Investors are worried about tariffs and the economy, leading to heightened risk aversion, with U.S. stocks and cryptocurrencies plummeting, while U.S. bonds and gold prices rose.
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