Mayhem in the bond market as Trump's tariff policies take centre stage. At first, tensions in the world’s biggest debt market sparked a sell‑off in both stocks and Treasuries, sending the 10-year yields spiking as traders braced for the economic fallout. The narrative shifted dramatically when Trump paused his higher reciprocal tariffs in the afternoon, posting on Truth Social to buy, igniting a risk-on bonanza that sent the market into a frenzy buying. This policy reversal recovered Treasury yields to "normalised" levels as traders reduced expected Federal Reserve rate cuts from four to three by year-end, while thirty-year yields dropped as inflation fears subsided. The chaos intensified as investors unwound leveraged bond bets, a move Trump acknowledged in his comments, further amplifying the market’s volatility. Ultimately, the bond market may become the only stopping force for further tariff measures, highlighting the more complex market dynamic than Trump might have hoped for.

EQUITY

Wall Street was surprised with an impromptu rally. Nasdaq gained the most at 12%, while S&P 500 soared 9.5%, its largest daily gain since 2008, following President Trump's announcement of a 90-day tariff pause for many countries. All 11 S&P 500 sectors rallied, led by a 14.15% jump in technology stocks after a steep four-day decline from Trump's volatile tariff imposition, especially toward China. Concerns remained regarding volatility beyond the 90-day period and the unresolved trade tensions with China, where tariffs were raised to 125%.

GOLD

Gold prices climb higher by safe-haven demand as tariffs on Chinese imports rise to 125%, even with the announcement of a tariff pause for other countries temporarily. Spot gold is holding above $3,100/oz, briefly touching record close. Markets now await key U.S. CPI and PPI data to gauge the Federal Reserve's interest rate trajectory, with analysts suggesting gold could reach $3,200/oz by month-end if an earlier rate cut is expected.

OIL

WTI gained more than Brent, both about 7% higher following President Trump's announcement of a 90-day pause on higher tariffs for most countries, which may improve demand. However, the rally was short-lived as prices retreated again with the U.S.-China trade war still trading blows, with Trump raising tariffs on Chinese imports to 125% after China's 84% tariffs hit. Some support from supply disruptions like the Keystone pipeline shutdown was offset by crude inventories reaching their highest level since July.

CURRENCY

The greenback gained against safe-haven yen and Swiss franc after President Trump announced a 90-day pause on many new tariffs, although it weakened against the Chinese offshore yuan that is excluded from the list. Treasury yields played a huge role in the current market movement, with falling yields pressuring the dollar. Headline inflation will be a centrepiece for future developments as the market contemplates an early rate cut in May or mid-June as planned.