Bitcoin (BTC) traded above $81,000 Wednesday afternoon, while the Nasdaq index was nearing a 10% gain. The White House’s latest announcement calmed markets that had been rocked by fears of a prolonged and aggressive trade war.
In a post on his Truth Social platform, President Trump announced that several countries had initiated negotiations on trade, tariffs, and currency issues. This news, coupled with his decision to authorize a 90-day pause on new tariffs and a temporary reduction of the existing reciprocal tariff rate to 10%, brought a sense of relief to the market.
However, the administration is raising Chinese tariffs to 125%, “effective immediately.”
The 10-year Treasury yield climbed above 4.5% earlier and retreated to 4.4% following the news.
Trump’s surprise came after four days of market volatility triggered by uncertainty over U.S. trade policy. Earlier this week, stocks saw their worst multi-day performance since the Great Financial Crisis as investors weighed the possibility of global recession risks tied to escalating tariffs.
Treasury Secretary Scott Bessent, a figure respected on Wall Street, announced his leadership in the upcoming tariff negotiations. His involvement is seen as a stabilizing factor, with many favoring his moderate approach over the more hawkish stances of Commerce Secretary Howard Lutnick and trade advisor Peter Navarro.
Trump’s call for calm and investment on Truth Social early Wednesday carries an optimistic message. He urged investors to “remain calm” and added, “This is a great time to buy.” This positive outlook could potentially influence market sentiment.