Trump's "reciprocal tariff" stance softens, US stocks and cryptocurrency market rise

Trump's plan to take a more targeted approach to the "reciprocal tariff" introduced on April 2 has alleviated market fears that an escalating trade war could fuel inflation and drag down the economy. Meanwhile, the U.S. services PMI rebounded, driving overall PMI improvement.

Buoyed by this positive news, U.S. stocks rallied across the board. The SP 500 gained 1.76%, the Dow Jones Industrial Average rose 1.42%, and the Nasdaq surged 2.27%.

Large-cap tech stocks performed strongly, with Tesla soaring over 11.9%, marking its largest single-day gain since the day after the election.

The cryptocurrency market has recently been moving in sync with U.S. stocks. Strategy boosted market confidence last week by purchasing 6,911 BTC for $584.1 million. Bitcoin saw steady gains yesterday and briefly surged to $88,765 after the U.S. market opened, before pulling back slightly to $87,030 at the time of writing, reflecting a 24-hour gain of 1.7%. Among the top ten major cryptocurrencies, SOL showed even stronger momentum, currently trading at $140, up 5.17%. Most market sectors were in the green, with the meme coin sector leading gains at 7%.

In the forex and commodities markets, investor concerns over Trump’s April 2 tariff plan have eased, driving the U.S. Dollar Index up 0.25% and crude oil up 1.2%. Meanwhile, with the dollar strengthening and gold prices at historic highs, investors took profits, causing spot gold to drop 0.30%.

Trump's shift toward a softer stance on imposing tariffs on trade partners, combined with other macroeconomic indicators pointing in a more favorable direction in recent days, has lifted market optimism. Investors are now closely monitoring the latest developments in Trump’s "reciprocal tariff" plan to assess its potential impact on economic growth and inflation.