The US stock market continues to navigate recent developments, with Trump’s suspension of tariffs contributing to a rebound, and Bitcoin climbing back above $82,000.
Major stock indices are still on the mend following the alarm caused by the escalating trade tensions in the U.S. On April 11, the S&P 500 increased by 43.75 points, or 0.83%, reaching 5,531. Meanwhile, the Nasdaq sat at 16,555.96, up 168.65 points or 1.02%, while the Dow Jones pushed to 39,910, reflecting an uptick of 0.80% or 316.40 points.
The relatively robust performance of the tech-centric Nasdaq indicates that investors are willing to embrace more risk. Consequently, cryptocurrency prices have also surged, with Bitcoin (BTC) rising by 4.47% to $82,708. Ethereum (ETH) is on the rebound as well, climbing 5.68% to $1,587.01.
Bond market declines amid inflation anxiety
Despite the rally, underlying concerns remain, and stocks experienced a correction following the release of consumer sentiment data. The University of Michigan’s survey showed consumer sentiment at 50.8 points, down from 57.0 in March. This figure fell short of the Dow Jones estimate of 54.6 and marked a 34.2% decline year over year.
The same survey suggests that fears about inflation are contributing to the dip in consumer confidence. Expectations for inflation over the next year rose to 6.7%, an increase from 5.0% in the previous month. This uncertainty surrounding inflation is making consumers uneasy about their financial situations.
Ongoing concerns about inflation, trade, and a potential recession are also affecting the bond market. Yields on 10-year treasuries increased to 4.466%, signaling a lack of liquidity in the market, particularly for foreign investors worried about the political and economic climate under the current administration.
“There is real pressure across the globe to sell Treasuries and corporate bonds if you are a foreign holder. There is a global concern as to the direction in which the administration is heading,” noted Peter Tchir, head of US macro strategy at Academy Securities.