The message from the Trump administration eased investor enthusiasm and kept the market more than the durability of potential trades, but Wall Street's “Sel America” trade shaking as U.S. stocks roamed high at three-day rally as they erupted by easing trade tensions.
Earlier this week, investors dumped both US stocks and traditional safe shelters, with 10-year financial yields (^TNX) above 4.4%, with the US dollar (DX-Y.NYB) at its lowest level since 2022.
The extraordinary movement that is drawn back from both risk assets and volatility hedges is considered a rare dislocation, and strategists have named it the infamous “Sel America” trade. However, these trends began to reverse this week as investors returned to US debt and currency.
On Wednesday, the 10-year yield fell to around 4.3%, bringing the dollar closer to a psychologically significant 100 level. Meanwhile, Gold (GC = F), which set several records in recent days, retreated to around $3,290 per ounce as investors gathered at globally recognized and valued stores of non-dollar religions.
However, trading measures on Thursday brought gold prices to surge again to around $3,340 per ounce. Backing Trends: Treasury yields for 10 years bouncing high late on Wednesday, but returned to about 4.3% on Thursday.
In addition to what appears to be a more lucrative trade development, Trump helped ease investors' concerns by his decision to betray his attempts to remove Federal Reserve Chairman Jerome Powell.
Since the president's “liberation day” announced earlier this month, investors have navigated markets exploited by multiple economic shocks, including tariffs, slowing growth and escalating geopolitical tensions.
Read more: Latest news and latest news on Trump tariffs
However, the president has shown he is paying attention to noise, suggesting that some strategists may be more focused on market responses to his policies than before. Previously, the Trump administration claimed it had not monitored the stock market during its recent sale.
“It was more attention to market volatility, not just the stock market, but also the 10-year yield,” Keith Lerner, Truist's co-chief investment officer and chief market strategist, told Yahoo Finance. “I think the 10-year Treasury yield has also been “putted” on how far Trump is, or how comfortable he feels. ”
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President Trump will speak with reporters as he takes part in the ritual oath of Paul Atkins as chairman of the Securities and Exchange Commission in the White House's oval office in Washington on April 22, 2025. (AP Photo/Alex Brandon) ・Associated Press
Usually, if stocks and bonds move in the same direction, that is due to rising inflation that will increase the dollar. However, this time, the confidence crisis seemed to disrupt the usual dynamics.
Key members of the presidential team, including Treasury Secretary Scott Bescent, have sought to ease investor concerns.
In a speech Wednesday, Bescent said regarding tariffs, “I want to make it clear that I don't just mean America. Conversely, it is a call for deeper cooperation and mutual respect between trading partners.”
Read more: What Trump's tariffs mean for the economy and your wallet
Bescent emphasized the importance of maintaining a stable US dollar amid recent market fluctuations, saying, “The US will remain the reserve currency of the world throughout my life.”
Francesco Pesole, FX strategist at ING, told Yahoo Finance that the White House initially expected a stronger dollar in response to tariffs. Instead, that decline in confidence led to the sale of the dollar.
The trader works on the floor of the New York Stock Exchange (NYSE) in New York City on April 23rd (Reuters/Brendan McDermid) ・Reuters/Reuters
This is probably “not something that Bescent was satisfied with,” Pesol said. “I believe there will be a continuous attempt to reestablish at least some dollar stability during the period when the first inflation hit occurs in the US.”
As investors continue to digest fast-moving headlines, some strategists have warned that more volatility is likely ahead.
“I think it's a relief rally,” Tematika Research's chief investment officer, Chris Versace, said Wednesday. “People were very concerned about the impact of (Chinese tariffs). The impact of the economy, the revenue guidance we'll get over the next few weeks. So for me, it's a relief gathering.”
But “it still has an impact,” he warned. “I think we need to wait for that and see exactly where these new potential tariffs go. At the same time, what about China's reaction to this? They have mutual tariffs on us.
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Alexandra Canal is a senior reporter on Yahoo Finance. X @Allie_Canal, follow her on LinkedIn and email her to alexandra.canal@yahoofinance.com.
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