Investors are growing concern about the exit of American assets as a treasury and a decline in the dollar

The sale of financial markets in April was broader and more volatile than the typical decline operations, which concerns that the aggressive and constantly changing commercial policy from Washington, DC, may cause long -term damage to the financial status of the United States

the S & P 500 It has now decreased by 5.4 % since President Donald Trump’s definition announced on April 2, with daily moves that attract uncomfortable comparisons with notorious financial periods such as 2008 and 1987. The decrease during the past seven trading days comes after the stock market was already a rock start to 2025, and other major American assets also began to slip, including the dollar.

“Large ready -made meals of this year, from Trump’s presidency, from everything that happened, is that there is a rotation from the United States and it is clear that it is now empty – with the revenue of the bonds remaining and the dollar’s decline, the story has become, but this exit started well before the liberation day.Squawk box“

The great fluctuations in the stock market are affected on its own, but Wall Street’s positives are increasingly concerned about the moves in the currency and bond markets. The treasury and the dollar usually benefit from safety environments to safety, which is the function of the historical financial power of the United States.

But Friday, bond prices pushed the index 10 years of return treasury For a short period above 4.5 %, up from 3.99 % only a week ago. At the same time, and Ice dollar index He hit his lowest level in three years. Greenback has seen particular sharp drops against safe currencies such as the Japanese yen and the Swiss franc, as well as the euro.

“The market re -evaluates the structural gravity of the dollar as the world’s global reserve currency and is subject to a process of rapid disposal,” said George Saravilus this week.

“Usually, when you see the increases in the big customs tariffs, I expected the dollar to rise. The fact that the dollar decreases at the same time that I think it gives more credibility to a story Investor preferences changePresident Neil Kackari, Chairman of the Federal Reserve at Minneapolis, said on Friday.Squawk box“

The thinking process can be the same in the bond market, as foreign governments and other institutions are usually carrying senior US Treasury bonds. CNBC told CNBC that he had not seen direct evidence that foreign investors are throwing treasury bonds, but fear alone is sufficient to move the market.

Goldberg said: “The markets are confident. Even the perception that foreign investors are trying to stay away from the treasury markets can lead to great panic,” Goldberg said.

“There are many of our major companies that have great brands abroad (against) … we have a big problem at the present time,” said Larry Fink, CEO of Blackrock.Screaming“

The revenues of the emerging Treasury Ministry overcame the future spending on the US government, and thus economic growth. The higher returns mean that the United States government owes more attention to any debts around it or issues of new spending, which exacerbates concerns about the federal deficit.

“The level of the stable state of sustainable financial deficit in the United States is transmitted. This reduces the flexibility of the American administration in following up the expansion fiscal policy to support growth, in the same way that the United Kingdom and France faced similar restrictions,” said Deutsche Bank Saravilus.

On the horizon of these moves on the market is the possibility of another spread in inflation. Although modern readings have become relatively cold, they do not reflect the April tariff ads. The latest university Consumer survey in Michigan It showed that the Americans are concerned about a Spike in inflation Associated with definitions.

Inflation is not only worrying on its own, but also limits options Federal ReserveWhich will be reluctant to reduce interest rates when consumer rates rise.

“It is about what will happen after that, and this is the inflation driven by the tariff. It has changed the dynamic inside the bond market,” said Jim Bianco, president of Bianco Research on Friday.Money. “And all this talks about benefiting from the benefit and the bank and whether or not the Chinese are selling, and all other things, and this is just an acceleration in the biggest step here. “

– Michael Bloom of CNBC contributed to reporting.