U.S.–China trade tensions flared again on Friday. The U.S. has threatened 100% tariffs on Chinese goods in response to new export controls, and China has responded with countermeasures. That escalation spooked global markets, the Dow dropped nearly 900 points and the Nasdaq fell over 3.5%, wiping out about $2 trillion in market value.
But today pre-market futures are pointing to a strong rebound at the open. President Trump’s recent comments softening his stance on tariffs—signalling openness to a potential deal—have calmed investor fears, erasing much of the prior losses and boosting sentiment.
Trade war or not, markets were due for a correction, the trade war is the trigger. Risk assets like crypto collapsed on Friday, this is not a normal move, there is fear for risk assets. Gold is rallying to new highs because a crisis is unfolding, the rebound in crypto and stocks today won’t last.