Rising and falling like crazy, fear spreading on Wall Street: US stocks, bonds and exchange rates have changed from safe havens to the core of the storm.

Notice that, after President Trump's tweet on Wednesday caused the S&P 500 index to surge 7% in eight minutes, the good times didn't last long. By Thursday morning, the stock market was down, and more importantly, the U.S. Treasury bond yields surged, even though Trump stated that it was the sudden spike in bond yields that prompted him to implement a 90-day grace period. The bond market is crumbling, and it may not stop unless the Treasury or the Fed intervene. Fixed income strategist Ed Hou said, "I am not actually worried about an economic recession, what I am really worried about is a financial crisis." Looking back at the overall market of the past week, investors may overlook the heavy blow that U.S. assets have taken in Trump's trade war: the S&P 500 rose over 5%, U.S. bond yields returned to February levels, passive funds continued to flow in, and Bitcoin weekly closed higher. But this hides a deep shift in the mindset of investors, traders, and analysts - the logic of holding desirable U.S. assets is being fundamentally questioned. In the midst of crazy fluctuations, key trading patterns are starting to show characteristics of emerging markets. More and more voices believe that Trump's efforts to reshape global trade rules may endanger America's privileged position in the financial system. The volatility in the U.S. stock market traces back to 2008. "Sometimes you will doubt if you are looking at the data wrong, you must repeatedly check the chart, because price changes too fast," said Charlie McKale, head of cross-asset strategy at Nomura Securities. "Risk limit alarms are constantly sounding, dopamine levels are peaking." Measured by Wall Street standards, this is still a brutal week: false tweets on Monday caused the largest intraday rebound in 2020, only to give back all gains soon after; White House officials announced on Tuesday that a 104% tariff would be imposed on China, putting S&P 500 on the brink of a bear market; U.S. bond prices began to plummet, and the 30-year yield saw its largest increase since 2022, hedge funds that had bet on market stability for decades now face liquidation. Then on Wednesday, Trump promised to pause the trade war, triggering the largest single-day stock market surge since 2008, with trading volume on U.S. stock markets hitting a record 30 billion shares. The bond market continued to be sold off, although some initially described this as a normalization of investors selling risky assets, the selling behavior has not stopped. "It's like experiencing Sunday night fear every day," lamented Matt Miskin, investment advisor at John Hancock for 300 clients. His quarterly outlook prepared for clients became worthless due to market turmoil. "When volatility rages and liquidity dries up, prices can move illogically, which often means big institutions are forced to liquidate." According to sources, Tudor Investment Corporation bond trader Alexander Phillips suffered losses of around $140 million due to the April tariff fluctuations, and is currently working hard to recover the losses. This hedge fund, managing $16 billion, has been severely hit, and the fluctuation of U.S. bonds and the U.S. dollar is shaking its traditional safe-haven status. Phillip Toews, CEO of Toews Asset Management, pointed out, "We must consider that the fixed income market could suffer a huge shock, and possibly change everything. The news headlines and the market's reaction are just mind-boggling." Although Boston Fed President Collins said that "the Fed is absolutely ready to stabilize the market," EPFR data shows that U.S. bond funds attracted a record $18.8 billion in the week ending Wednesday, but overseas U.S. funds experienced $6.5 billion in outflows, the second largest outflow of 2020. "Overseas investors have lost confidence in U.S. stocks, bonds, and the dollar," confessed Nathan Tutt, who manages $16 billion in assets at John Hancock. "The key is to assess whether this is a temporary shock or a long-term shift? We tend to the former, but the fact that large institutions are seeking alternative safe-haven assets is indisputable." This mindset is driving the U.S. dollar weaker: the yen, the Swiss franc, and gold are strengthening against the dollar, the euro hit a three-year high, and options traders are bearish on the dollar for the first time in five years. Al Houssaini of Columbia Threadneedle noted that the simultaneous decline in the currency and government bond markets is characteristics of emerging markets. "For years I have often joked that the UK bond market looked like an emerging market after Brexit," he said, "and now this week they finally have the opportunity to turn that joke around on me."