Dollar Soars: Fed's Rate Cut Uncertainty and Global Market Impact

The U.S. dollar surged nearing one-year peaks, driven by Federal Reserve rate cut speculations impacting global stocks and treasuries. Market uncertainty grows following Trump's victory, affecting tech stocks amid rising bond yields. European shares face pressure, while Asian markets remain stable with promising Chinese retail sales data.

The U.S. dollar soared on Friday, approaching its highest mark in nearly a year, as doubts over potential Federal Reserve rate cuts sent ripples across treasuries and global stock markets. Remarks by Fed Chair Jerome Powell reinforced a cautious stance, suggesting no rush for rate cuts, supporting the strong U.S. economy.

While Wall Street stocks faced a losing streak, with futures down, tech shares took a harder hit due to elevated bond yields. This trend follows a surge post-Trump victory, driven by expectations of tax cuts and deregulation, though now clouded by growing interest rate uncertainties.

European equities struggled amid tariff threats and regional political instability, leading to deep losses. Conversely, Asian markets showed resilience, buoyed by favorable Chinese retail data, signaling potential uplift from Beijing's economic stimulus initiatives.

(With inputs from agencies.)