US President Donald Trump imposed new tariffs on goods from China, Canada and Mexico, and the S&P 500 index was sold off again yesterday (3/4), erasing the post-election gains. However, US Commerce Secretary Howard Lutnick said that some tariffs may be reduced, and the stock market narrowed its decline at the end of the trading session. Bitcoin rebounded to $87K, and the community is looking forward to what the White House will unveil at the crypto summit on Friday.

Tariff impact, will the US recession concerns lead to rate cuts?

Due to the uncertainty of the Trump trade war, market sentiment has changed rapidly, and the crazy market volatility has been impacting the market all day. After the US officially launched tariffs on Canada, Mexico and China, Canada and China also retaliated against the US, and the market is worried that the tariffs will have an economic impact. Currently, the CME FedWatch index shows that investors believe the Fed may need to start rate cuts in June to rescue the economy, and by the end of the year, it may need to cut rates by three times.

(US economic outlook clouded: Q1 GDP forecast revised down to -2.8%, recession concerns rise)

Due to concerns about economic slowdown, Goldman Sachs's risk appetite indicator has turned negative for the first time since last October. Strategist Andrea Ferrario said that these concerns are more severe for the US than other parts of the world, and although corporate earnings for the fourth quarter were strong, the sentiment around S&P 500 index constituent earnings is currently "very negative".

Where is Trump's defense line?

From New York to London and Tokyo, the stock market generally fell on Tuesday, as concerns about the impact of the trade war on the economy caused the S&P 500 index to fall back to pre-election levels.

If Wall Street has learned one thing during Trump's first presidential term, it's that the stock market is a way for him to be graded. In theory, President Trump likes to use the stock market as a report card, which means that any policy that disrupts the market will lead him to modify his plans. But as the stock market plunges, investment experts are beginning to question whether there is a "Trump Put".

Tom Essaye, founder of Sevens Report Research, pointed out: "How much pain will the market have to endure before Trump and the government change their policies? Obviously, we don't know the specific numbers, but if we look back at Trade War 1.0, the 'Trump Put' will appear around a 10% drop in the S&P 500 index."

The S&P 500 index is currently down about 6% from its historical high.

However, according to statistics from JPMorgan, Trump has posted 156 positive tweets about the stock market's performance during his first term as president. But since 2024, he has only posted one post related to the stock market.

(Trump calls for crypto reserves, will he focus more on the crypto market than the stock market in his second term?)

Bitcoin rebounds to $87K, the community looks forward to the crypto summit on Friday

The White House will host the inaugural Crypto Currency Summit this Friday (3/7), which will be hosted by White House AI and Crypto Czar David Sacks. Michael Saylor, founder of Strategy (formerly MicroStrategy), is also rumored to attend the crypto summit at the White House on Friday.

The top 10 cryptocurrencies by market cap rebounded slightly yesterday, with Bitcoin returning to $87K and Ethereum briefly approaching the $2,000 mark, closing at $2,171. ADA gained nearly 10% in 24 hours.

The performance of cryptocurrencies this year has been closely tied to tech stocks and the overall economy, and the crypto community may also be looking forward to what the crypto summit on Friday will unveil.