The U.S. stock market experienced an extraordinary surge following President Donald Trump’s announcement of a 90-day pause on tariffs, with the market jumping by $3.5 trillion in a single day. This increase equaled the entire crypto market cap at its peak in late 2024, underscoring the scale of the rally.
This dramatic market movement was sparked by Trump’s announcement, which included a 125% tariff hike on Chinese goods. Global markets reacted strongly, but it was the crypto community that felt the optimism the most, with Bitcoin rising 6.5% and surpassing the $82,000 mark. The overall crypto market cap also saw a notable 7% increase.
The S&P 500 index, a key economic indicator, rose by 5.8%, marking one of its largest one-day gains since 1923. It climbed from 4,948.43 to 5,451.96, according to Marketwatch. A heatmap of S&P 500 companies shared by Watcher.Guru on X showed significant gains across the board, especially in the tech sector, with companies like NVIDIA, Apple, Microsoft, and Google rising by 13.56%, 11.50%, 8.23%, and 7.11%, respectively.
For the crypto market, the $3.5 trillion surge in the stock market was a bittersweet reminder of its own history. At its peak in December 2024, the crypto market cap briefly touched $3.7 trillion, fueled by Bitcoin’s dramatic rise to $100,000 before Trump’s inauguration.
However, earlier tariff threats from Trump had already caused volatility in the crypto space, with Bitcoin dipping below $75,000 just earlier this week. This highlighted the susceptibility of the crypto market to broader market sentiment, despite Trump’s previous vocal support for the industry.
As global markets process Trump’s escalating trade war with China, the crypto sector is left wondering if it can replicate the bullish momentum experienced by U.S. stocks. For now, the $3.5 trillion stock market jump serves as both a milestone and a stark reminder of the volatile relationship between traditional and decentralized finance.
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