The market after Trump's 180-degree turn: asset surge lasts only one day, S&P briefly approaches circuit breaker

Investors have reported that the economic issues in the United States remain unresolved, and the market is like a startled bird, with U.S. stocks experiencing severe fluctuations again, erasing half of the historic gains from the previous day.

On April 10, according to CCTV News, in the face of the escalating tariff policies in the U.S., global media have criticized the significant harm caused by U.S. tariff policies. The uncertainty of Trump's tariff measures and the disruption of supply chains are impacting the economic and profit outlook for U.S. companies.

On Thursday, U.S. stock markets fell again, with the S&P 500 index's decline nearing the threshold to trigger a market-wide circuit breaker, which would pause trading for 15 minutes. The yield on 30-year U.S. Treasury bonds surged, oil prices plummeted, and the dollar fell against major currencies. Although all trends weakened as trading progressed, the volatility index remained high.

Analysis from Scott Ladner, Chief Investment Officer of Horizon Investment:

The fundamental cause of all this turmoil is the profound aversion of investors to U.S. assets due to Trump's trade policies; investors are fully resisting everything.

Tariff Uncertainty: The Investment Strategy Dilemma Amid Increased Volatility

Since Trump took office, such extreme volatility has been a norm for traders. Missing a major rebound could impact careers, but suffering losses from a sharp decline over just a few days can be equally fatal.

David Wagner, Portfolio Manager at Aptus, stated:

You can't have it both ways. People are constantly being forced to change their positions. It seems this is happening again, and people's positions are once again at a disadvantage.

In such an uncertain market environment, investors are adopting various strategies to cope. Eric Sterner, Chief Investment Officer at Apollon Wealth, said:

We haven't changed our positions this week, but we have made some changes over the past few months.

He added that his company has been shortening the duration of its fixed-income portfolio to cope with interest rate fluctuations and increasing allocations to alternative investments such as private equity and private credit.

Dylan Bell, Chief Investment Officer at CalBay Investments, stated:

We are long-term strategic investors, so our mindset is absolutely to stay invested to avoid missing those rebound days.

His company has reduced its positions in small-cap stocks and increased holdings in fundamentally strong large-cap tech stocks to address potential economic downturns