Trump-Xi Call Sparks Market Jitters—Traders Brace for Volatility
Geopolitical tensions flare as former US President Trump re-engages with China's Xi Jinping. No details disclosed—but crypto markets twitch like a hedge fund manager watching their shorts unravel.
Digital assets could become the ultimate pressure valve if traditional markets seize up. After all, when nation-states play chicken, decentralized networks don't ask for permission to settle transactions.
One thing's certain: Wall Street will monetize the uncertainty while Main Street foots the bill—some things never change in high-stakes finance.
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Trump Speaks with Xi amid Rising Tensions
While the details of the conversation are still unclear, tensions have risen between the two countries during the past few days. Last week, Trump accused China of violating the preliminary U.S.-China trade deal signed in Geneva. The violations include failing to remove tariff countermeasures, such as restricting the FLOW of critical minerals used in semiconductors and cars.
Yesterday, Trump said on Truth Social that Xi was “VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”
In response, China’s MFA spokesperson Lin Jian said that China has respected the deal while the U.S. “falsely accuses and smears China” and has enacted suppression measures, such as new chip export controls and plans to revoke the visas of Chinese students in the U.S.
The S&P 500 (SPX) received a premarket boost from the news but has since given up those gains.
