Following President Trump's tariff threats and the Greenland dispute, global investors accelerated a "sell America" trade, unloading US stocks, bonds, and the dollar. The US Dollar Index dropped nearly 1%, its largest single-day slide since last April’s tariff shocks.
US Treasury bond prices fell sharply, sending 10-year yields higher to around 4.28%. Equity markets experienced notable losses, with the Dow Jones Industrial Average tumbling more than 700 points.
Conversely, safe-haven assets surged. Gold futures rose 3.5%, setting a new record above $4,750 an ounce, while silver gained 6.3%, briefly hitting above $95 an ounce. These moves reflect flight to safety amid geopolitical and trade uncertainties.
Market analysts caution that if Trump does not reverse course on tariffs—the so-called "TACO" (Trump Always Chickens Out) dynamic dissipates— sustained risk premiums could depress US asset valuations further. Investors are recalibrating risk and diversifying away from US assets amid concerns over reliability of economic partnerships.
