Financial Volatility Explodes, Then Soars

What a day! Financial markets have been a rollercoaster over the past 24 hours, swinging from tariff-driven despair to a jaw-dropping rally overnight. It all kicked off with China’s 84% tariff bomb on U.S. goods late yesterday, but a U.S. tariff pause (excluding China) for 90 days—whispered in the early hours of the morning—has flipped the script, igniting a global surge.

The carnage started with the Dow cratering 300 points, the S&P 500 shedding 1.5%, and the Nasdaq slumping 2% as tariff fears gripped traders. Then came reports of a U.S. tariff delay, sparking a rally. The Dow rocketed nearly 2,000 points, the S&P 500 jumped 6%, and the Nasdaq soared over 8%. Bitcoin, after dipping to $76K, is charging back toward $82K, catching the tailwind of this insane rebound.

China’s tariff salvo sent the VIX “fear gauge” screaming to 49—the highest since 2020—before it eased to 33 as hope took hold. Oil jumped 5% after a brief dip, and Treasury yields steadied as bond sellers hit pause. The U.S. tariff pause has markets betting on a trade war de-escalation—at least for now. It’s a 180-degree turn that’s left everyone reeling.

Crypto traders are calling this a “short squeeze”, as panic-sellers got burned by the sudden upswing. Bitcoin’s up 8%, with some eyeing it as the ultimate chaos hedge. Sentiment has flipped from “Extreme Fear” to cautious hype in just hours, though volatility remains off the charts. Liquidity is thin, but the mood is lifting.

All eyes are on tomorrow. Will the Fed signal rate moves? Will the U.S. make the delay official? For now, it’s a euphoric bounce after a brutal start...