Gold, meanwhile, surged to a record $3,227.45. The broad move away from the dollar suggests that investors no longer view it as the automatic go-to in periods of stress.
Has the Trade War Escalation Spooked Markets?
Fresh tariff hikes between the U.S. and China have deepened investor anxiety. The U.S. raised duties to 145% on Chinese imports; China responded with 125% on U.S. goods. With no signs of renewed talks, fears of prolonged economic fallout are rising. Deutsche Bank flagged risks of a disorderly decoupling, while global equity markets are under pressure.
What Should Investors Expect Now?
As U.S. stock futures swing wildly, traders are entering the session on edge. The simultaneous selloff in Treasuries and the dollar points to a deep loss of confidence.
Until there’s clarity on trade or signs of policy support, money is likely to keep flowing into defensive assets. For now, the bias remains risk-off, and any negative headlines could spark another wave of selling.
