New York (AP) – A certain relief circulates in the financial markets worldwide, and actions bounce back to recover a little from their historical losses Since President Donald Trump radically has raised the stakes in his trade war Last week.
The S&P 500 increased by 3.7% in the morning trade, although there are even more than 14% below its Record set in February. The industrial average of Dow Jones increased by 1,388 points, or 3.6%, at 10:30 a.m., and the NASDAQ composite was 4.1% higher.
The rebound was global. The stock market indices joined 6% in Tokyo, 3.5% in Paris and 1.6% in Shanghai. The price of crude oil also pulled higher after touching its lowest level since 2021 on Monday. Bitcoin Steadied and was back above $ 79,000 after dropping $ 76,000 on the previous day.
Even with the big leap of Tuesday, which could be the best for the S&P 500 since the end of 2022, analysts say more Balance from top to bottom are probable for markets not only in the coming days, but also perhaps the hours.
The big question remains centered on the duration of the duration of Trump to keep its prices rigorous on other countries, which would increase the prices of American buyers and slow the economy. If they last a long time, economists and investors expect it to cause a recession. But if Trump lowers them by the negotiations relatively quickly, the worst case can be avoided.
The hope remains at Wall Street that negotiations could be possible, and Trump said on Monday that a conversation with the acting president of South Korea helped them reach the “limits and the probability of a large part for the two countries”.
“Their best team is on a plane towards the United States, and things are fine,” said Trump on social networks. “We are also dealing with many other countries, all of which want to conclude an agreement with the United States.”
Japanese actions have led the world markets after the country’s Prime Minister Shigeru Ishiba appointed its commercial negotiator for interviews with the United States. It was based on an agreement between Ishiba and Trump, Japanese officials said.
It seems that we have been very occurred and there is hope that things could defuse here, “said Sameer Samana, a main strategist for the world market for Wells Fargo Investment Institute, however, he also suggested remaining prudent” while key countries continue to degenerate, rather than defusing “.
China said she “Fight until the end” And warned against countermeasures after Trump threatened on Monday to raise his rates even further on the second world economy.
Such a rebound for the global markets that Tuesday may not be a surprise. The actions are not going in a direction forever, and some of the best days in market history have been grouped around some of its worst days.
The biggest gain for the S&P 500 since the Second World War was an increase of 11.6% on October 13, 2008, for example. It was during the depths of the great recession, when the concerns was high that the financial system collapsed and the S&P 500 was in the midst of almost 57% of its peak at the end of 2007 to its bottom in March 2009. A few weeks later, the index had another of its best days in history, on 10.8%.
This is one of the reasons why many financial advisers suggest that they do not try to time the market and sell stocks and other long -term investments when nervous, due to the risk of lacking such huge days.
Trump’s trade war is an attack on globalization that has shaped the world economy and has helped reduce prices but has also made manufacturing jobs leave for other countries. He said he wanted to bring factory jobs to the United States, a process that could take years. Trump also says that he wants to reduce trade deficits with other countries.
In Wall Street, health insurers helped direct the market after the Centers for Medicare & Medicaid Services announced a Increase in Medicare Advantage payments for next year. Humana jumped 11.8%, United Health climbed 8.3%and an increase increased by 4.8%.
On the bond market, the treasury yields rallied for a second consecutive day to recover more from their strong losses compared to previous months. The yield on the 10 -year treasure increased to 4.23% against 4.15% Monday evening and only 4.01% Friday evening.
Yields tend to increase with the expectations of the force of the American economy and inflation. ___ AP commercial writers Matt Ott and Elaine Kurtenbach contributed.
