U.S. Stocks Surge; Crypto Market Volatile Amid Tariff War

U.S. stocks extended their gains for a second consecutive day on Wednesday, with the three major indexes closing near their daily highs. The Dow Jones Industrial Average rose 0.71%, the S&P 500 increased by 0.39%, and the Nasdaq Composite added 0.19%. Large-cap tech stocks had mixed performances, with NVIDIA surging 5.21% while Tesla's stock price fell 3.58% due to a sharp drop in German sales.

The crypto market experienced a downward trend, with Bitcoin rising above $99,000 last night before seeing a significant pullback, hitting a low near $96,000 this morning. It is currently trading at $97,450, down 0.61% in the past 24 hours. Influenced by Bitcoin, altcoins generally declined, but Ethereum, after its previous oversold conditions, showed independent movement and has now rebounded to around $2,800, with a 24-hour increase of 2.33%. The current crypto market is significantly affected by the Trump tariff war and potential inflation, showing sharp fluctuations with sudden drops and rises. It may still need time to adjust and recover in the short term.

In the forex and commodities markets, global trade war concerns have slightly eased, leading to the U.S. dollar falling to a one-week low, the Euro rising slightly, the Pound hitting a one-month high, and the Yen rising over 1%. Market concerns about global oil demand outlook caused oil prices to drop over 2% to refresh daily lows. Both the U.S. dollar and U.S. bond yields weakened, coupled with investor concerns about trade friction escalation, driving safe-haven demand and pushing spot gold to a new high.

Investors are closely watching Friday's January non-farm payroll report, as well as potential policy adjustments and trade negotiation progress in the future. The market overall maintains a cautious attitude towards a series of risk events.