Sou Hu Cai Jing·2025-10-12 04:44Core Viewpoint - The announcement by President Trump to significantly increase tariffs has triggered a global financial crisis, leading to massive losses in the stock and cryptocurrency markets, while traditional safe-haven assets like gold have surged in value [1][3][7]. Market Impact - Following Trump's tweet about tariffs, the Dow Jones dropped 878 points, the Nasdaq fell by 3.56%, and the S&P 500 experienced its worst single-day decline since April [3]. - Major tech stocks were heavily impacted, with Nvidia losing nearly $230 billion in market value after a 4.89% drop, and Tesla and other tech giants also suffering significant losses [3]. - Chinese stocks faced even steeper declines, with the Nasdaq Golden Dragon China Index plummeting 6.1%, and companies like Alibaba and Baidu seeing drops exceeding 8% [3]. Cryptocurrency Market Reaction - Bitcoin experienced a sharp decline of 13.5%, falling from a historical high of $126,000 to a low of $105,900, while other cryptocurrencies like Ethereum and Dogecoin saw declines of over 20% [3][7]. - A significant number of leveraged trades resulted in over 152,000 liquidations within 24 hours, amounting to nearly $10 billion in losses [3][4]. Gold Market Performance - In stark contrast to the declines in risk assets, gold prices surged by 1.58%, surpassing $4,035 per ounce, as investors flocked to traditional safe-haven assets [7]. - The crisis highlighted Bitcoin's volatility and risk, as it fell more sharply than traditional assets during the trade war panic [7]. Broader Economic Concerns - The U.S. government shutdown entered its 10th day, with layoffs announced, exacerbating fears of economic stagnation [7][8]. - The potential impact of tariffs on consumer goods was significant, with reports indicating that the cost of the iPhone 16 Pro Max could rise to $2,300 due to tariffs, and Tesla vehicles could see a cost increase of $15,000 [8]. Consumer Behavior - Consumers reacted to the impending tariffs by stockpiling goods, leading to a surge in sales of electronics and a notable 11.2% increase in U.S. auto sales in March as buyers rushed to purchase before tariffs took effect [10]. International Reactions - The EU proposed retaliatory tariffs on $28 billion worth of U.S. goods, while Japan and South Korea initiated measures to stabilize their markets in response to the U.S. tariff threats [11].