Markets fluctuate as investors reassess 'sell America' trade amid easing tensions
From Yahoo Finance: 2025-04-24 11:58:00
Wall Street fluctuated as US stocks surged in a three-day rally amid easing trade tensions, but mixed messages from the Trump administration tempered investor optimism. Earlier this week, investors sold US stocks and safe havens, causing the 10-year Treasury yield to rise above 4.4% and the dollar to drop to its lowest level since 2022.
The uncommon move of pulling back from both risk assets and volatility hedges signaled a rare dislocation in the market dubbed the “sell America” trade. However, trends began to reverse as investors reinvested in US debt and currencies. Gold prices spiked to $3,340 an ounce, and 10-year Treasury yields bounced back to around 4.3%.
President Trump’s reversal on removing Federal Reserve Chair Jerome Powell helped alleviate investor worries amidst a volatile market. The recent sell-off was compounded by economic shocks like tariffs, slowing growth, and geopolitical tensions. Trump’s shift towards considering market reactions to his policies suggests a new focus on investor sentiment.
The crisis of confidence in the market disrupted the usual dynamics of stocks and bonds moving together due to inflation. Treasury Secretary Scott Bessent reassured investors by emphasizing the importance of collaboration among trade partners and stabilizing the US dollar amidst market fluctuations. The White House’s expectations of a stronger dollar in response to tariffs were disrupted by a decline in confidence leading to a dollar sell-off.
As investors navigate fast-moving headlines, more volatility is anticipated. Some strategists believe the recent rally is a relief but caution that the impact of potential tariffs and China’s response could still have significant consequences. The uncertainty in the market underscores the need for caution and vigilance in the coming weeks. StockStory aims to help individual investors beat the market. Senior Reporter Alexandra Canal from Yahoo Finance covers the latest stock market news and events that move stocks. Stay informed with the latest financial and business news from Yahoo Finance. Follow @allie_canal on Twitter for updates. “Are they willing to play ball? We’ll have to see.”
Read more: Markets reassess ‘sell America’ trade as yields dip, dollar wobbles