At 12:05 AM ET, the bond crises escalates: Bond traders in Tokyo began dumping U.S. Treasuries. Panic over rising tariffs led Japanese pension funds to sell off holdings. Yields on 10-year notes spiked by 20 basis points. Asian markets tumbled, and the ripple effect moved west.
European Markets Follow with Sharp Losses
By 2:30 AM, the damage hit Europe. The FTSE dropped 1.8%. Germany’s DAX fell over 2%. Investors braced for more volatility. Global recession fears returned as traders feared escalation in the U.S.-China trade war.
Bond Crises: Wall Street Prepares for a Bloodbath
U.S. futures collapsed by 5:00 AM. Nasdaq futures tanked more than 3%. S&P 500 and Dow Jones followed, signaling a brutal market open. Analysts warned of a sell-off not seen since early COVID days.
Markets Open in Freefall
At 9:30 AM, the bell rang and chaos erupted. The Dow immediately dropped 1,000 points. Nasdaq fell 4.5%. S&P lost 3.8%. Tech stocks took the biggest hits. Apple, Nvidia, and Microsoft all plummeted. Investors had no clear direction—just fear.
Bond Market Signals Crisis
By 11:00 AM, yields on U.S. Treasuries spiked to multi-month highs. Liquidity dried up. Japan reportedly paused all Treasury purchases. The bond market hinted at deeper problems. Economists raised concerns about a long-term investor revolt.
Trump Shocks Everyone on Truth Social
At 1:23 PM, Trump posted a stunning announcement on Truth Social. He revealed a 90-day pause on reciprocal tariffs for countries that didn’t retaliate against the U.S. But at the same time, he raised tariffs on China to 125%, effective immediately.
Stocks Rocket on Surprise Pivot
By 1:35 PM, Wall Street flipped. The Dow recovered 800 points within 15 minutes. Nasdaq erased all morning losses. Investors saw the pause as breathing room. Apple jumped 10%. Tesla climbed 13%. The panic became euphoria.
White House Claims Strategic Victory
At 1:50 PM, White House Press Secretary Julie McDonald briefed reporters. She claimed more than 75 countries had contacted U.S. officials, urging talks. She called Trump “a master negotiator” and said the pause proved his strategy worked.
Bessent Explains Tariff Floor
At 2:10 PM, Treasury Secretary Scott Bessent added clarity. All non-China countries would face a reduced 10% universal tariff during the 90-day pause. Sector-specific tariffs would stay in place. Wall Street took the news as confirmation of stability.
Wall Street Surges Toward Record Day
By 2:45 PM, the Dow was up over 2,000 points. The S&P 500 had gained more than 7%. Nasdaq surged over 9%. Tesla rallied 19%. Delta Airlines spiked 22%. Nvidia and Apple each rose more than 11%. Buying momentum exploded.
Trump Doubles Down on Victory
At 3:10 PM, Trump posted again. “Markets UP. China PAYS. America WINS,” he wrote. He declared the pause a brilliant tactical move. His supporters flooded social media, praising him as the reason for the market rebound.
Bond Yields Begin to Cool
By 3:30 PM, bond markets stabilized. The 10-year yield dropped to 4.72%. Buyers returned after hours of panic. The sharp pivot had restored some confidence in both equities and fixed-income markets.
Closing Bell Caps a Wild Ride
At 4:00 PM, the Dow closed up 2,423 points, marking its biggest one-day gain since 2020. The S&P 500 ended up 7.6%, and the Nasdaq jumped 9.8%, its best showing in five years. Investors exhaled.
Media and Analysts React
Cable networks exploded with coverage. Fox News called it “a Wall Street miracle.” MSNBC questioned the method but acknowledged the result. Bloomberg dubbed it “the Truth Social pivot.” Markets cheered, even if questions remained.
Uncertainty Lingers Despite Rally
For now, Trump’s unexpected tariff reversal gave Wall Street a rare day of gains. But with China still facing a 125% tariff, the trade war may just be entering a new phase.
