tl;dr
S&P 500 futures fell 1.6% amid rising U.S.-China trade tensions and potential new tariffs on Chinese semiconductors and pharmaceuticals. Bitcoin underperformed all major asset classes over the last 24 hours, falling 2.8%, while traditional safe havens like gold and U.S. 10-year bonds saw gains. The ...
S&P 500 futures dropped 1.6% amid escalating U.S.-China trade tensions and potential new tariffs targeting Chinese semiconductors and pharmaceuticals.
Bitcoin underperformed all major asset classes over the last 24 hours, falling 2.8% and trading mostly sideways despite a broader flight-to-safety in traditional markets.
Gold surged 2.7%, hitting near-record highs around $3,261 per ounce, while U.S. 10-year bonds gained 0.55%, as investors sought defensive assets amid rising trade uncertainty.
Equities and oil faced broad selling pressure, with E-mini S&P futures down 2.06% and oil sliding 1.13%, following confirmation that U.S. tariffs on Chinese imports have reached 145%.
Bitcoin’s stagnation contrasts sharply with gold’s rally, calling into question its current role as a macro hedge amid geopolitical risks and rising inflationary concerns.
Nvidia warned of a $5.5 billion earnings hit due to U.S. export restrictions on AI chips to China, intensifying uncertainty in the semiconductor sector.
European semiconductor stocks declined sharply amid export concerns: ASML dropped 6.5% and ASM International fell 4.5%, contributing to broader market weakness across the Stoxx 600, Germany’s DAX, and France’s CAC 40.
The market is pricing in a prolonged U.S.-China trade standoff, with investors favoring traditional hedges such as gold and sovereign bonds, while Bitcoin shows cautious positioning amid renewed geopolitical tensions.
Despite recent volatility, Bitcoin has outperformed traditional assets since early April, gaining over 5%, even as S&P futures, oil, and the dollar index have declined significantly over the same period.
Investor sentiment remains guarded as national security investigations and trade policies fuel market uncertainty, prompting defensive allocations and highlighting the evolving dynamics between cryptocurrencies and traditional markets.