Global Financial Market Turmoil: Tariff Policies Trigger Chain Reactions

Recently, the global financial markets have experienced a severe shock. The three major U.S. stock indices have continued to decline, and European and Asian stock markets have also seen significant drops. The commodities market has likewise been affected, with both crude oil and gold prices plunging. The cryptocurrency market has not been spared either, with Bitcoin falling more than 10% in two days and Ethereum plummeting by 20%. The entire financial market presents a scene of a "sea of red."

The main reason for the recent market turbulence is the executive order on "reciprocal tariffs" signed by the U.S. President. This policy announces a "minimum baseline tariff" of 10% on trade partners and imposes higher tariffs on certain trading partners. This move has triggered trade frictions globally, with multiple countries and regions taking countermeasures.

After the announcement of the tariff policy, global financial markets experienced an unprecedented crash. U.S. stock futures continued the sharp decline from last week, with Nasdaq futures down more than 5% and S&P 500 index futures down over 4%. European stock index futures also fell sharply, with the European STOXX 50 index futures down over 4% and DAX index futures down nearly 5%. The Asian markets were not spared either, as the Japanese and South Korean stock markets collapsed again, with the Korea Composite Stock Price Index opening down over 4% and the Nikkei 225 index down nearly 2%. The Hong Kong stock market recorded its largest single-day drop since October 1997.

The cryptocurrency market has also been severely impacted. The price of Bitcoin briefly fell below $75,000, altcoins collapsed across the board, with Ethereum dropping below $1,500 and SOL hitting a low of $100. Data shows that on that day, a total of 487,700 people were liquidated globally, with the liquidation amount exceeding $1.632 billion.

This financial storm has sparked concerns about the possibility of the U.S. economy slipping into recession. Many economists and business leaders have stated that the U.S. economy may already be in a severe recession. According to a survey, 69% of business executives expect an economic recession in the U.S., with over half believing that the recession will occur this year.

Despite the general pessimism in the market, there are also some positive signs. Governments of several countries have begun to take action to stabilize the market. There are reports that the U.S. government is considering suspending tariff policies, which briefly boosted market sentiment. Although this news was later confirmed to be false, the market did not experience further significant declines, indicating certain bottom characteristics.

Analysts have differing opinions on the market direction. Some believe there is still room for further selling, while others think the market has overreacted. Technical analysts generally tend to be bearish, expecting Bitcoin prices may further decline to the range of $66,000 to $72,000.

Currently, the market focus is on the upcoming release of the Federal Reserve's March monetary policy meeting minutes. Investors hope to gain more insights into the future direction of monetary policy from it. Meanwhile, attention is also closely on the U.S. government's follow-up adjustments to tariff policies and the progress of global trade negotiations.

In this highly uncertain environment, investors need to remain vigilant, closely monitor market trends and policy changes, and manage risks effectively. In the coming period, global financial markets may continue to face volatility, and the performance of various assets may also show divergence.