Trump's Tariff Announcement Triggers Market Volatility

According to BlockBeats, U.S. President Donald Trump announced a 10% tariff on all imported goods this Wednesday, alongside "reciprocal tariffs" for countries with significant trade deficits with the United States. The announcement prompted immediate market reactions, with Bitcoin plummeting from an intraday high of $88,500 to $81,200, erasing earlier gains and causing widespread liquidations in the cryptocurrency market. Over $221 million in long positions were liquidated, with Bitcoin experiencing a more severe impact compared to Ethereum. As anticipated, risk assets followed suit, with U.S. stock index futures taking a hit. S&P 500 futures fell by 3.38%, while Nasdaq 100 futures dropped by 4.28%. The sell-off extended into the U.S. stock trading session yesterday, with consumer stocks like American Eagle Outfitters plunging 17.47%, reflecting investor concerns over exposure to Asian supply chains. With this significant macroeconomic risk event unfolding, market attention is now shifting to tonight's non-farm payroll report. Investors are wary of signs of weakness in the U.S. labor market. If the data falls short of expectations, it could strengthen the case for further interest rate cuts by the Federal Reserve this year, as policymakers aim to cushion the economic slowdown. As of the latest reports, the market anticipates four rate cuts in 2025, with 25 basis points each in June, July, September, and December. In the options market, trading desks have observed persistently high short-term volatility and a surge in demand for downside protection. This skew highlights the current market sentiment dominated by uncertainty and caution. Nevertheless, with positions already lightened and risk assets generally oversold, a short-term rebound may be on the horizon.