Wall Street surged Wednesday after a blowout 10-year Treasury auction helped calm fears of a financial crisis, delivering a sharp rebuke to doomsayers who predicted foreign investors would flee American assets in protest of President Donald Trump’s trade agenda, and President Trump announced a pause in tariff hikes on some countries.
The Dow jumped 5.9 percent, the S&P 500 rose 7.3 percent, and the Nasdaq soared 8.9 percent, capping a dramatic rebound from a week of steep losses triggered by spiking bond yields and escalating global tariffs.
The spark? A remarkably strong $39 billion auction of 10-year Treasury notes. The bonds sold at a yield of 4.435 percent, lower than expected, with a significant stop-through—a sign that investors were eager to buy even below prevailing market rates. Foreign buyers, classified as “indirect bidders,” scooped up 88 percent of their allocation, far exceeding historical norms.
Analysts characterized the auction as “very strong.”
At the same time, Donald Trump said on social media that he would pause tariff hikes for 90 days on countries that were not retaliating against the U.S. tariffs announced last week. The 10 percent baseline tariff will remain.
For days, Wall Street had been gripped by panic that Trump’s tariff offensive would spark a “sell America” rout, with foreign creditors—especially China and Japan—dumping Treasurys. Yields on the 10-year surged more than 60 basis points over four days, the biggest move since the 2008 financial crisis. Talk of a liquidity crunch and emergency Fed intervention dominated headlines.
By subscribing, you agree to our terms of use & privacy policy. You will receive email marketing messages from Breitbart News Network to the email you provide. You may unsubscribe at any time.
But Treasury Secretary Scott Bessent urged calm.
“There are some very large leveraged players who are experiencing losses,” Bessent said on Fox Business early Wednesday. “They are having to deleverage… I believe there is nothing systemic about this.”
The auction vindicated that view. Demand was broad and deep—undercutting claims that foreign buyers were staging a boycott. Treasury prices rose sharply after the results, and yields fell back from crisis levels. Stocks followed suit, surging across the board as investors reassessed the risk outlook.
The turnaround came just one day after a disappointing 3-year auction had amplified fears of collapsing demand. Analysts warned of a potential “demand strike,” driven by Trump’s tariffs, high inflation, and rising deficits. Some speculated that the Fed might have to intervene to stabilize markets.
Instead, investors showed up in force—reaffirming confidence in U.S. debt and sending a message that America’s capital markets remain the most trusted in the world, even amid a global trade realignment.
The bond market now turns its attention to Thursday’s 30-year auction. But after today, Wall Street’s mood has clearly shifted—from panic to confidence.
Source: Breitbart.com
Leave a Reply