Trump can pull stocks back from the brink, but bond and currency markets may not be so easily impressed as they rapidly de-dollarize

• President Donald Trump introduced even more instability and uncertainty In its commercial war, excluding a number of consumer electronics components. Although it is expected to promote the shares of US technology companies, the total stock market, bonds and currency markets can be a different history.

President Donald Trump has shown that an epic stock gathering can cause its “mutual tariffs”, most likely, will stake the stocks further, but bonds and currency markets can be a different history.

On Wednesday, US stock indexes made a mass profit after Trump announced a 90-day break on his sharper tariffs, although he rose to China. It helped to tear some of the 6 trillion dollars of the market, which was destroyed when his “Liberation Day” tariff announced the investors around the world.

Another turn has been issued a US customs and border protection New leadership Friday evening On his so-called mutual tariffs, relieving a number of imports Like smartphones, computers, semiconductors, chip making equipment, flat panel TVs and basic technological components.

This is likely to make more stock profits when markets are reopened. A Insert the X weekly morningWedbush Analyst Dan Ives is called Trump’s privileges “Best possible news for technological investors” It raises a huge cloud on the field.

However, the sale of the last dollar and treasury bonds showed that the return of the tariff could push the stock investors looking for quick returns and do not provide long-term security.

The 90-day Trump’s 90-day tariff pause helped to get the treasury yield out of their heights, but they resumed their climbing later during the week Bonds were sold even when stocks roseA number

That as US assets traditionally seen as safe havens Losing that status Former treasury secretary Larry Summers warns that US bonds trade Like the nation of the developing market.

“The market has stopped rapidly,” George Saraveo, Global Research Head German bankThis last week states that “the market has lost faith in US assets so that instead of closing the inconsistency, they are actively selling US assets.”

Previously note that Trump’s administration seems to encourage de dollarization trend, Saravlos said he plays faster now. “It simply came to our notice then that this process could stay,” he warned.

Similarly, the Federal Reserve President of Mineciolis also pointed out the dollar and the bonds moving as signs that investors turn from the United States.

“Usually, when you see that the large tariff is growing, I would be able to rise in dollars. He said to CNBC Friday.

Undoubtedly, the decline of the Almighty dollar was frequently predicted in the past without realizing. And the trend of de dollarization continues for years, especially since Russia invaded Ukraine in 2022, sanctions against Moscow, which prompted other countries to question the safety of their own dollar reserves.

Since then, the central banks have been protesting on gold, which hits record high prices, as China, India, Brazil and other best economies use non-dollar currencies.

But tariffs have degraded one-time dominant view “American exclusivity” Meanwhile, the growing debt can begin to overestimate “Exorbitant Privilege” The United States is enjoying.

Whereas The world already had trust problems with AmericaBecause Trump shook the traditional security allies and commercial partners after holding a position.

Now, the roll of tariffs, which are the highest more than a century. Even as they are watered many times, there may be a long-term shemism.

“The damage of the US dollar has been done. The market revalues ​​the structural attractiveness of the dollar as a currency of the world reserve and passes rapid de dollarization, “said Saravlos in a separate note. “Nowhere is it more obvious than the continuous and combined collapse of the currency and the US bond market approaches this week.”

This story was originally shown Fortune.com