US financial markets have been battered by President Donald Trump’s trade war, with double-digit declines in major US stock indexes testing nerves. The S&P 500 has tumbled over 12% and is being outpaced globally, while traditional safe-haven assets like Treasurys and the dollar have become erratic.
Only gold has maintained its reputation as a safe zone, hitting record highs after multiple breaks. Other markets are struggling, including stocks, bonds, and foreign exchange. US Treasury yields have soared, typically indicating a safe place for investors to park their money, but this is no longer the case.
The Nasdaq composite has plunged nearly 18%, while overseas markets have largely outperformed their US counterparts. Bonds are also volatile, with the 10-year Treasury yield reaching as high as 4.80% in January before spiking again this month. The US dollar has fallen by 9% against a basket of other currencies.
Energy prices have taken a hit, with gasoline prices down sharply from last year’s levels. Oil prices are also falling, driven by concerns over the impact of tariffs on global economic growth. Bitcoin has continued to fluctuate, but its price remains higher than in recent years despite wider market sell-offs.
Source: https://apnews.com/article/stock-market-bonds-gold-bitcoin-oil-dollar-f3bf98f79192e4c6706437b36ea064e9