After the three major US stock indexes opened high on Monday, they fell back during the session and briefly all turned negative, but finally closed higher collectively. At the close of trading, the Dow Jones Industrial Average (DJIA) rose by 0.78% to 40,524.79 points, the S&P 500 Index gained 0.79% to 5,405.97 points, and the Nasdaq Composite Index increased by 0.64% to 16,831.48 points. Amgen rose more than 2%, and Travelers Group gained over 2%, leading the DJIA. The Wind US Tech Seven Giants Index rose by 0.15%. Apple surged over 2%, Google rose more than 1%, Tesla gained 0.02%, while the other four companies saw slight declines.
At the same time, Chinese stocks surged, with the NASDAQ Golden Dragon China Index closing up 3.23%. Popular stocks collectively rose, with Alibaba and XPeng Automotive gaining over 5%, JD.com and Pinduoduo increasing over 4%, Baidu rising over 3%, and Li Auto and NIO both gaining over 2%.
Meanwhile, the three major A-share indices collectively rose. Consumption rebounded across the board, with retail and first-tier economy sectors leading the way. Cross-border e-commerce concept stocks surged to涨停. By the close of trading, the Shanghai Composite Index rose by 0.76% to 3,262.81 points, the Shenzhen Component Index gained 0.51%, the ChiNext Index increased by 0.34%, and the BESE 50 Index rose by 2.06%. More than 4,500 stocks were up.
A Share Index Performance iFinD Tonghuashun
In Two Blinks During the Tariff War
Last week, American assets were sold off in a frenzy, especially US treasuries and the dollar, which are considered safe-haven assets.
The yield on the 10-year US Treasury note once broke through 4.5%, and the US Dollar Index fell below the 100 mark. The US stock market temporarily stabilized under the support of the Federal Reserve on Friday, and with the intraday reversal on Wednesday, it narrowly ended the week in positive territory.
Trump made his first concession, announcing a 90-day delay just 13 hours after the implementation of the reciprocal tariffs, triggering a rebound in the US stock market.
However, the temporary relief from the tariffs only provided one day of respite for the market. As China firmly retaliated, global capital continued to accelerate its exit from the United States.
Over the weekend, Trump made a second concession, and US Customs announced exemptions for some electronic products subject to reciprocal tariffs.
On Monday local time, Trump continued to indicate that he was studying the possibility of exempting import tariffs on automobiles and parts to give car companies more time to establish production bases in the United States.
Trump stated that "he is considering some measures to help automakers. They are shifting to using components produced in Canada, Mexico, and other places, but they need a little time because these components will be produced domestically in the future."
It is reported that Trump previously imposed an additional 25% tariff on cars, and the tariff on parts will come into effect no later than May 3. He has exemption clauses for Canada and Mexico, allowing vehicles that meet the current North American Free Trade Agreement's domestic content requirements to be exempt from taxation.
Trump's Opinion Video Screenshot
On the same day, US Commerce Secretary Rosthenberg told US media in an interview that the tariff exemptions for mobile phones, computers, memory chips, and other electronic products by the Trump administration were only "temporary."
However, the market still accurately picked up on Trump's "wink" and immediately reflected it in asset prices. A spokesperson for the Ministry of Commerce of China also positively evaluated Trump's small concessions, calling them a small step towards correcting the mistaken practice of unilateral "reciprocal tariffs." They urged the US side to face the rational voices from the international community and various domestic quarters, take a big step forward in correcting errors, completely cancel the mistaken practice of reciprocal tariffs, and return to the correct path of mutual respect and resolving differences through equal dialogue.
US Treasuries Suffer a Major Sell-Off
Trump's so-called "reciprocal tariff" policy continues to cause financial market volatility, and even traditional safe-haven assets like US treasuries have been sold off, eliciting strong reactions from informed individuals in the United States.
Former US Treasury Secretary Janet Yellen told CNBC that the recent sell-off in US Treasury bonds indicates a "worrying decline" in confidence in US policy-making.
Wall Street veteran and president of Yardeni Research, Edward Yardeni, said that last week, the ominous spike in US Treasury yields was about to trigger a domino effect in the financial markets, but Trump caved in. "If he didn't care about the stock market, now we know he definitely cares about the bond market."
More Wall Street investment banks and economists have recently downgraded their forecasts for US economic growth while raising inflation predictions.
Chief economist Joseph Brusuelas of tax advisory firm RSM said, "The root cause of the impact on US dollar assets, particularly the US Treasury market, lies in investors losing confidence in US policies due to the sudden shift in Trump's tariff policies, which is reflected in their behavior in the US financial markets. This leads to the unwinding of leveraged trades and investment institutions stepping aside to observe."
Deutsche Bank strategist George Saravelos previously stated: "The market is reassessing the structural attractiveness of the dollar as a global reserve currency and is undergoing a rapid de-dollarization process."
US Treasury Secretary Bessent previously calmed the market, denying the existence of selling, saying, "I don't think foreign investors are selling." He pointed out that demand from foreign investors increased in last week's 10-year and 30-year Treasury auctions. Bessent added that he had learned not to pay too much attention to what happens in a single week.
US Treasury Secretary Bessent's Response Video Screenshot
Bessent reiterated that he believed the market sell-off was mainly due to deleveraging. He stated, "I have no evidence that sovereign states are the driving force behind the decline."
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Original Source: https://www.toutiao.com/article/7493366316384993811/
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