Trump, tariffs, and a crazy high on wall street
Hello, friends of Project HOPE, good day everyone. Sometimes things happen so suddenly in the world of markets that you don't know if what you're seeing is real or if you're just daydreaming. And that's exactly what happened when Trump announced the 90-day suspension of the additional tariffs planned for dozens of countries. The impact was immediate, and what followed was a roller coaster ride, but in reverse—one of those that rises so fast that you don't even know how to react.
Let me tell you, the Dow Jones Industrial Average closed with a brutal rise of 7.87%, something not seen since 2008, when we were in the midst of the financial crisis. And the Nasdaq... well, that was on another level: it rose 12.16%, marking its biggest daily gain since 2001, almost nothing.
The crazy thing is how a simple announcement, a political decision, can have so much power to shake up the mood of investors globally, because we're talking about trillions of dollars moving around because of a headline.
Of course, many will say it was a strategic move to calm the waters, to send a signal of relief in a situation that had been fraught with tension. But we must also understand that this reveals something else: how volatile markets are today. They're so susceptible to what a leader says or does that a structural change isn't even needed, just a promise (which may or may not be kept), for money to rush into risky assets.
And this is where one wonders, are we building stability or are we still at the mercy of impulsive decisions? Because if a tweet or a press conference sends stock markets soaring, it can also send them plummeting. So while some celebrate the red numbers that have turned green, others, more level-headed, know that these kinds of rebounds can also be misleading.
What do you think? Is this a useful pause or just a smokescreen? I'll read you. Best regards.
