Trump's advocate effect was a flash in the pan, American assets were fully dumped, and the volatility of the US stock market is now comparable to Bitcoin.

As the US-China trade tensions escalate, economic anxiety looms over every corner of Wall Street, with US stocks, the dollar, and oil prices declining. Trump's advisory effect only lasted for one day, and Peter Schiff warned that US assets are being sold off, urging investors to fasten their seatbelts. Although yesterday's CPI data was below expectations, the aggressive trade policies could lead to sustained inflation, raising concerns among several Federal Reserve officials. The market is anticipating that the Federal Reserve's intervention may not occur, and they are preparing to wait and see, responding to changes with stability.

The effect of the advocacy by Chuan Investment Consulting was short-lived, Peter Schiff: fasten your seatbelt.

A day after the biggest wave of stock purchases in years, cyclically-linked assets fell again, and the frenzy turned to jitter despite Trump's announcement that he was on the verge of reaching the first deal on tariffs with a country. There are fears that an escalation in the trade war between the two major economies will cause lasting damage to global growth, as the White House says U.S. tariffs on China have risen to 145 percent. The S&P 500 fell 3.46%. The dollar hit its worst day since 2022, and solid sales of US 30-year Treasuries failed to trigger a bond market rally.

Gold bull Peter Schiff continues to warn everyone to fasten their seatbelts:

"I have never seen such a massive dumping of American assets. The dollar, bonds, and stocks have all taken a hit. I don't remember when the dollar depreciated 3.5% against the Swiss Franc in a single day. The journey of the United States on the global wealth train is about to come to a sharp halt."

I’ve never seen such a mass selloff of U.S. assets. The U.S. dollar, bonds, and stocks are all getting killed. I can’t remember when the dollar lost 3.5% against the Swiss franc in one day. America’s ride on the global gravy train is about to come to a screeching halt. Buckle up.

— Peter Schiff (@PeterSchiff) April 10, 2025

Even Bloomberg analyst Eric Balchunas has posted evidence, claiming that the volatility of the current S&P 500 index is as high as that of Bitcoin!

The S&P 500 is as volatile as bitcoin now pic.twitter.com/OrO68Z0HiS

— Eric Balchunas (@EricBalchunas) April 10, 2025

Concerns about tariffs linger, and the Federal Reserve's market rescue may not materialize.

Despite Thursday's CPI data showing a general cooling of inflation in the U.S. for March, this data was calculated before widespread taxation, which could exacerbate price pressures. As Trump's high taxation ferments in the economy, the decline in prices for services such as hotel accommodations and airfare may be a warning signal that some consumers are reducing discretionary spending.

At the same time, more and more officials from the Federal Reserve are expressing concerns that aggressive trade policies may lead to persistent inflation. Chicago Federal Reserve Bank President Austan Goolsbee stated that tariffs act like a stagflationary shock, presenting challenges for the Federal Reserve, as there is no universal response plan to address such shocks. Recent remarks from several officials indicate that the Federal Reserve is not in a hurry to further lower borrowing costs, but is more willing to observe how changes in government policy will impact the economy before adjusting interest rates.

This article discusses how Trump's advocate effect was short-lived, U.S. assets were comprehensively sold, and the volatility of U.S. stocks has now become comparable to that of Bitcoin. It first appeared in Chain News ABMedia.