A global stock index declined on Tuesday after five days of gains, while the U.S. dollar reached its highest level in over four months. This shift comes as investors evaluate the anticipated impact of President-elect Donald Trump’s policies on economic growth and inflation. Trump’s promise to impose high tariffs on imports and deregulate sectors has driven investors toward assets expected to thrive under his administration. The S&P 500 saw a significant rise, bolstered by banking stocks benefitting from reduced regulations, while small-cap stocks surged due to tariff expectations and tax cuts. Bitcoin also experienced an increase, nearing $90,000, as Trump supports cryptocurrency proliferation.
Despite Wall Street’s record highs for major indexes on Monday, concerns regarding possible inflation led to rising U.S. Treasury yields and a stronger dollar. The Dow dropped 250 points, and European markets, heavily impacted by China’s economic exposure, saw significant losses following news of Marco Rubio’s potential appointment as Secretary of State.
Benchmark U.S. 10-year Treasury yields rose, reflecting inflation concerns. Federal Reserve officials emphasized their readiness to react to inflation changes, with President Barkin noting a balance in inflation and employment metrics. The dollar index increased by 0.54%, while the euro and sterling fell against the dollar. Expectations for further rate cuts by the Federal Reserve have diminished.
Oil prices slightly rose, staying close to a two-week low after OPEC revised demand growth downward.
Original Story https://www.livemint.com/news/world/stocks-fall-as-rally-stalls-yields-climb-on-trump-policy-worry-11731441919819.html
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