4E: Tariff Truce Boosts Market Confidence, U.S. Stocks and Crypto Market See V-Shaped Recovery

BlockBeats News, February 4th. Over the weekend, the Trump administration announced tariffs on Canada, Mexico, and China, its three largest trading partners, causing a major upheaval in the global financial markets. On Monday, Trump stated that the tariff measures on Mexico and Canada would be postponed for one month and that negotiations would continue.

According to 4E monitoring, the tariff delay caused a sharp turnaround in the US stock market during trading hours, with major indices quickly rebounding and halving their losses. The Dow turned positive towards the end of the day, ultimately closing down 0.28%, the S&P 500 fell by about 0.7%, and the Nasdaq dropped 1.2%, with the latter falling by over 2% in early trading. Large-cap tech stocks saw mixed performance, with Tesla falling by 5.17%, Nvidia dropping by 2.84%, while Meta rose by 1.2% to hit a new high.

The crypto market experienced a waterfall-like decline yesterday but has now embarked on a strong rebound after the global tariff war risk was mitigated. Bitcoin has been rising steadily since last night's news of easing tensions between the US and Mexico. Additionally, Trump's signing of an executive order to establish a sovereign wealth fund, potentially for the government to purchase and hold cryptocurrency, has greatly boosted market confidence. It briefly touched $102,500 in the morning, completely recovering yesterday's losses. Ethereum returned to around $2,900, and the altcoin market collectively rebounded, helping to repair the heavily damaged market sentiment.

In the commodities market, the US dollar surged by over 1% at one point, but after the postponement of tariffs on the US-Mexico front, the gain significantly narrowed to 0.6%. Oil prices fluctuated in response to the tariff news, exhibiting a pattern of initial rise, subsequent fall, and then recovery. Safe-haven sentiment lifted gold prices, with spot gold rising by up to 1.1% to surpass the $2,830 mark, hitting a new all-time high.

The recent tariff war has significantly shaken the market's nerves, with investors worried that a full-blown trade war could disrupt the global supply chain, increase inflation, and drag down the economy. As the tariff war is postponed, the market has breathed a sigh of relief. This week is a busy earnings season for US stocks, with over 1/5 of S&P components set to release fourth-quarter earnings. Additionally, US January non-farm payroll data will be released on Friday. eeee.com is a financial trading platform that supports assets such as cryptocurrencies, stock indices, commodities like gold, and forex. Recently, it launched a USDT stablecoin investment product with an annualized return rate of 5.5% to provide investors with a potential hedging option. 4E reminds you to be cautious of market volatility and to allocate your assets reasonably.