Trump can pull stocks back from the brink, but bond and currency markets may not be so easily impressed as they rapidly de-dollarize
From Yahoo Finance: 2025-04-12 17:13:00
President Trump’s trade war exemptions for tech components could boost US technology companies’ stocks but may impact bond and currency markets differently. Stock indexes surged after a 90-day tariff pause was announced, helping recover market cap lost due to previous tariff announcements. US Customs issued guidance exempting key tech imports, likely leading to stock gains. Dollar and Treasury bond selloffs indicate a shift away from US assets, with experts warning of de-dollarization and loss of faith in US assets. The de-dollarization trend accelerated by Trump’s tariffs could lead to a lasting schism, as the dollar’s global reserve currency status is reassessed. Tariffs, despite being high, could mark the beginning of a lasting shift away from the US, with trust issues already present due to Trump’s actions. Market reassessment of the dollar’s attractiveness and rapid de-dollarization is evident in the currency and US bond markets’ collapse, highlighting a potential structural shift in global finance.