Wyatte Grantham-Philips and Damian J. Troise, Associated Press
NEW YORK (AP) — President Donald Trump’s burgeoning trade war has upside down this year’s global financial markets. The market hasn’t panicked completely, but a double-digit decline in major US stock indexes is testing nerves.
The US market was in tears for two years in 2025, but many believed that the stock price had risen too much. Trump’s trade war has pushed that sentiment into hyperdrive. The S&P 500 has fallen 13%, and the US market is screened in Europe, Asia and almost everywhere.
Trades in traditional “safe shelters” like the US treasure troves and dollars have become volatile and unpredictable. On Monday, the dollar was the lowest in three years, with US Treasury yields rising sharply. Yet yields usually drop as investors want a safe place to park their money. It doesn’t appear that the US Treasurys are offering the shelter they once went to.
Only gold, an internationally traded product, maintains its reputation as a safe zone. Gold prices are reaching highs one after another.
This is a summary of what’s happening in different segments of the financial market.
stock
US stocks have lost their position in a sharp reversal after two years of stellar profits.
The S&P 500 Index, considered a health benchmark in the broader market, fell by more than 13% in 2025. It increased by more than 20% in both 2023 and 2024.
The benchmark index has already been “fixed” and is down more than 10% from the records set in February. This year, only five weeks have finished in positive territory, but Monday’s decline has brought us closer to the bare market territory or down 20% from the recent highs.
The growth-focused Nasdaq composite has worsened with a 19% drop.
The overseas market has performed much better than its US counterparts.
Bonds
Treasurys, usually considered a low market risk area, was volatile throughout the year.
The 10-year Treasury Department, which affects mortgage fees and other loans, reached 4.80% in January, but then fell until Trump released a wide range of details of his tariff policy in early April. Yields then began to surge this month. The recent jump in bonds occurs when bond prices fall, reflecting increased anxiety about inflation and a potential recession.
The Treasury Department is essentially from the US government, and is the way Washington pays the bill. Bond prices usually move in the opposite direction of stock prices, but both prices have fallen to tandem. It creates a more important concern: the loss of faith in the United States as a safe place to invest.
gold
Gold is rising sharply in all economic uncertainties. I set records after recording 2025.
New York Spot Gold concluded on a record Thursday with about $3,343 per troy ounce (the standard for measuring precious metals). Prices have risen by nearly 27% this year.
Gold futures rose to more than $3,432 on Monday.
As investors seek a safe place for money, interest in gold spikes in times of uncertainty still has some volatility. For example, following Trump’s announcement of “liberation day” to sweep on April 2, Spot Gold prices have fallen for the third year in a row, but quickly recovered overall.
Forex
The US dollar, the global reserve currency, falls under the weight of uncertainty over the direction of tariffs, inflation and the US economy.
The US dollar has declined 9% in the year measured against baskets of other currencies, including the euro, Japanese yen, Canadian dollar and Swiss franc.
The dollar began to erode quickly in 2025, but these losses have accelerated over the past two months. A weak dollar means it is more difficult for the US government, businesses and consumers to borrow money at a lower rate. It also means that US consumers will have lower purchasing power and may hinder economic growth.
oil
There is good and bad news about energy prices. The average price of US gasoline gallons on Monday was $3.15, down sharply from $3.67 at this point last year. That’s good news.
The bad news is that energy prices will fall as people start to predict a slowdown. Factory produces less, families cancel holidays, businesses cut travel expenses.
Oil prices hit their four-year low this month, and tariffs were worried about the sinking of global economic growth.
The US benchmark West Texas intermediate crude was around $63 per barrel as of noon Monday. This has fallen by almost 14% until 2019. Brent crude, the European standard, was just above $66. It has fallen almost 13% since its launch in 2025.
Economists have warned that the sudden tariffs Trump is pursuing could cause a recession.
Bitcoin
Bitcoin continues to swell.
The world’s largest cryptocurrency has been appearing on roller coasters since the beginning of the year. Preparedness of over $109,000 has risen ahead of Trump’s inauguration in January, bringing the market selling down to under $75,000 this month. As of noon Monday, Bitcoin’s continued price was above $88,000 per CoinMarketCap.
This is more than $6,000 lower than what Bitcoin was trading in early 2025, but is significantly higher than in recent years. At this point last year, Bitcoin traded about $65,000. In April 2023, months after the November 2022 FTX collapse was encrypted, digital assets were under $30,000.
Trump was once a codesceptic, but through his campaign he became a leading promoter in the industry. And last month he signed an executive order establishing Bitcoin’s government reserves.
Original issue: April 21, 2025, 4:48pm EDT
