Odaily News QCP Capital posted on its official channel that Trump announced on Wednesday that he would impose a 10% tariff on all imported goods and impose "reciprocal tariffs" on countries with high trade deficits with the United States. The market responded quickly. Bitcoin plummeted from its intraday high of $88,500 to $81,200, giving up earlier gains and triggering a large-scale liquidation in the cryptocurrency market. More than $221 million in long positions were forcibly closed, and Bitcoin suffered a more severe impact than Ethereum.
As expected, risk assets fell across the board. U.S. stock index futures were the hardest hit, with S&P 500 futures falling 3.38% and Nasdaq 100 futures plummeting 4.28%. The sell-off continued into yesterday's U.S. stock trading session, with consumer stocks such as American Eagle Outfitters plummeting 17.47%, reflecting investors' concerns about exposure to the Asian supply chain.
With key macro risk events coming to an end, the market focus turns to tonight's non-farm payrolls report. Investors are wary of signs of weakness in the US labor market. If the data is weaker than expected, it will strengthen the Fed's case for further rate cuts this year as policymakers try to cushion the economic slowdown. At press time, the market expects four rate cuts in 2025 (25 basis points each in June, July, September and December).
In the options market, the trading desk observed that short-term volatility remained high and demand for downside protection surged. This deviation highlights the current market sentiment: uncertainty and caution dominate. Nevertheless, as positions have become light and risk assets are generally oversold, the stage may be set for a short-term rebound.