tl;dr
Stocks and cryptocurrency markets declined slightly on Friday after President Donald Trump accused China of violating a recent trade agreement. Trump claimed he made a deal to protect China from economic harm caused by his tariffs, but said China breached the agreement. The Nasdaq fell 0.32%, the S&...
Stocks and cryptocurrency markets experienced slight declines on Friday following President Donald Trump's accusations that China violated a recent trade agreement. Trump claimed to have brokered a deal intended to protect China from the economic impact of his tariffs, but stated that China breached this agreement.
The Nasdaq Composite fell by 0.32%, and the S&P 500 dipped marginally by 0.0081%. Meanwhile, cryptocurrency markets took a sharper hit, with the overall digital market capitalization dropping over 4%, including Bitcoin falling more than 1%.
These tensions follow a series of tariff impositions and retaliations between the US and China earlier this year. In early April, the Trump Administration introduced multiple waves of tariffs, which China countered with its own measures. This month, a deal was announced to suspend and reduce many tariffs, which had temporarily boosted equities.
President Trump shared on Truth Social that he had arranged a "FAST DEAL" with China to save it from what he called a "grave economic danger" caused by tariffs. According to him, this agreement initially stabilized the situation and pleased both parties. However, Trump expressed disappointment, stating that China has since “totally violated” the accord, undermining the efforts to maintain economic balance.
This development has injected uncertainty into the markets, as investors weigh the durability of trade agreements amid ongoing geopolitical frictions. The stock market showed resilience with minimal declines, but the cryptocurrency sector reacted more sensitively to the news, reflecting its broader volatility and sensitivity to global economic events.