By coinnews 
00:00 Speaker A
Risk-off investments, like the US dollar and long-term bonds, typically viewed as historical hedges against volatility. They aggressively sold off on Monday. We saw the 10-year yield surge back above 4.4%, while the US dollar dropped to its lowest level since 2022. Early trading on Tuesday saw a bit of a reprieve, but not much. The yield on the 10-year continued to trade around 4.4%, while the US dollar index also wavered below the critical 100 level. That’s a key psychological and technical milestone. Now, these types of moves are pretty unusual. Instead of flocking to safe havens, like US bonds or currencies, investors appear to be pulling back. That’s something Wall Street strategists have described as the sell America trade. And we’ve seen this shift in sentiment really accelerate as traders make strong moves into commodities like gold. The precious metal rallied to yet another record on Tuesday, a clear signal that investors are seeking non-dollar denominated, globally accepted stores of value. Now, the exact catalyst for all of this remains unclear as investors continue to react to a US economy already under pressure from tariffs, slowing growth, and escalating geopolitical tensions. We also now have the added risk of a potential political interference in monetary policy. That seems to have been one of the main drivers when it comes to Monday’s sell-off. But it’s not a good spot to be when the US trade loses its luster. According to JP Morgan, US equity ETFs saw net outflows of 3.6 billion last week, while developed international markets attracted above-average inflows, totaling around 3 billion. And that is a notable shift, considering how heavily US markets rely on foreign capital. If we look ahead, we have heard from some experts that say the long-term prospect of safe havens remains intact, but in the short run, it’s likely we will continue to see this volatility until we get some firmer updates on US trade deals and also see an improvement on the fundamental side as earnings continue to trickle in as well. And we have Tesla coming up after the bell this evening. That’s going to be the next big catalyst to watch there. Maddie Brad.
04:24 Maddie Brad
All right, Allie. Thank you so much. Appreciate it.