Nasdaq Rises 0.12% as Dow and S&P 500 Fall

The U.S. stock market opened with a notable divergence among its three major indexes. The Dow Jones Industrial Average (DJIA) declined by 0.79%, while the S&P 500 Index fell by 0.4%. Conversely, the Nasdaq Composite Index rose by 0.12%. This divergence highlights a shift in market dynamics, as the Nasdaq's positive performance contrasts with the declines in the DJIA and S&P 500.

Cryptocurrency-related stocks emerged as standout performers during this session. MicroStrategy (MSTR) led the gains with a 2.92% increase, followed by Coinbase (COIN) with a 1.76% rise. MARA Holdings (MARA) and Riot Platforms (RIOT) also saw gains, increasing by 2.85% and 0.92% respectively. This performance underscores the growing interest and investment in the cryptocurrency sector, despite the overall market volatility.

The recent market dynamics have shown that Bitcoin and gold have absorbed trade war volatility more effectively than other assets such as oil, equities, or sovereign debt markets. This divergence marks a departure from the historical correlation between Bitcoin and traditional stocks, where the digital asset typically exhibited larger price swings. The recent market dynamics have shown that Bitcoin and gold have absorbed trade war volatility more effectively than other assets such as oil, equities, or sovereign debt markets.

The US markets have been volatile, with the MSCI US index slipping slightly after a tumultuous session. Within this broader market movement, the Communication Services sector stood out by climbing, offering a glimmer of resilience. Treasury yields, which had recently pulled back, rebounded, suggesting a market recalibration of expectations, possibly anticipating inflationary pressures or shifts in Federal Reserve policy signals. The US Dollar index also edged up, stabilizing after recent losses, while gold took a hit, dropping to hover around a significant level. This decline in gold, often seen as a safe-haven asset, could reflect profit-taking or a reaction to rising yields, which typically make non-yielding assets less attractive.

On the energy front, Brent crude fell, weighed down by tariff-related demand concerns and increased output from OPEC+ members. Across the Pacific, Asian equities have mostly climbed in early trading, with Japan’s optimism setting the tone. This bounce-back follows a brutal sell-off, and it’s encouraging to see markets attempting to find their footing. US equity index futures are also signalling a positive start, suggesting that, despite the tariff threats and economic downturn fears, investors are willing to bet on a recovery—at least for now.

The recent divergence between gold and Bitcoin highlights the complex interplay of economic, political, and market forces. From November 2022 to November 2024, these two assets moved in a relatively tight correlation, with gold rising and Bitcoin soaring. However, in 2025, that relationship has begun to unravel, with gold up and Bitcoin down. What’s driving this divergence, and what does it mean for investors?

Bitcoin’s journey over the past few years has been remarkable, with its meteoric rise peaking above a significant level in January 2025. This surge can be traced to a surge in institutional adoption, with heavyweights deepening their stakes in the cryptocurrency market. New financial products have also fuelled this growth, offering contracts as small as a fraction of a coin, lowering the barrier to entry for retail investors. These innovations are broadening the toolkit available to investors, reinforcing Bitcoin’s staying power.

However, the road hasn’t been smooth. Bitcoin faced significant sell pressure, dipping before rebounding. Even with this recovery, it’s down in the past 24 hours and nearly from its January peak. This selling pressure underscores Bitcoin’s volatility—a trait that sets it apart from gold, even as both assets vie for the “safe-haven” mantle.

Gold, by contrast, has followed a steadier path in 2025. Its gain since late March reflects a flight to safety amid tariff tensions and rising yields. Unlike Bitcoin, gold benefits from its centuries-old reputation as a reliable store of value, especially when economic storm clouds gather. The recent drop might suggest some profit-taking, but the broader trend points to sustained demand. Rising Treasury yields, which typically pressure gold prices, haven’t derailed its upward trajectory, perhaps because investors see tariffs and geopolitical risks as outweighing the yield factor. This resilience highlights a key difference: while Bitcoin thrives on institutional momentum and speculative fervour, gold draws strength from its stability and universality.

The global risk sentiment will hinge on how tariff policies unfold. Japan’s early gains signal hope for targeted trade deals, but the broader threat of levies on dozens of countries could keep markets jittery. The S&P 500’s flirtation with bear market territory is a red flag, and if economic downturn fears intensify, we could see more wild swings across asset classes. For now, Asian shares are offering a glimmer of optimism, and US futures suggest a willingness to rebound. But with Brent crude sliding and central banks stepping in, the stakes remain high.