Tariff Fears Tank Stocks: Is Crypto the Safe Bet?

On May 7, 2025, U.S. stocks slid as tariff concerns resurfaced ahead of the Federal Reserve’s interest rate decision, Yahoo Finance reported. The Dow Jones Industrial Average dropped nearly 1%, losing 400 points, while the S&P 500 fell 0.8%, and the Nasdaq dipped 1.24%. Investors are rattled by President Trump’s trade policies, including a 10% global tariff, which could raise costs for companies like Philips, whose stock fell over 4% amid tariff-related fears.

Market Impact

Tariffs threaten higher prices and slower growth, hitting retail and tech stocks hardest. Apple, already down 20% in recent weeks due to supply chain worries, faces further pressure. However, safe-haven assets like Bitcoin, up 30% since April, could shine as investors seek refuge from stock volatility. Ethereum and stablecoins may also rally if uncertainty persists, offering a hedge against inflation fears sparked by tariffs.

What’s Next?

The Fed’s decision, due Wednesday, could amplify market swings. A rate hike might crush stocks further, while a pause could spark a crypto surge. Beginners should diversify—hold some Bitcoin or gold alongside stable energy stocks to weather the storm. Watch X for real-time tariff updates to time your moves.

Stay Ahead

Volatility is a chance to learn. Will you bet on crypto or wait for stocks to rebound? Comment below and follow trafy.io for market insights!