Stocks and Dollar in Turbulence as Trump Era Begins

Global stocks and the dollar experienced minor retracements despite a holiday boost. Wall Street indexes opened lower amid speculations over the U.S. economy under Trump's incoming administration. The dollar gained nearly 7% annually, while Japan's yen suffered four-year losses. Analysts expect potential market shifts post-holiday.

Global stocks, the dollar, and some Treasury yields faced modest setbacks on Friday, ending a holiday week that initially promised gains. Despite early indicators of a classic 'Santa Claus' rally, Wall Street's main indexes began the day on a downbeat note.

The U.S. dollar showed an annual uptick of almost 7%, while Japan's yen marked its fourth year of consecutive losses. Traders anticipate economic growth alongside Trump's tax cuts, tariffs, and deregulation, influencing the Federal Reserve's cautious stance on rate adjustments.

Looking forward, analysts predict possible market direction changes as investors return post-holiday, reassessing risks linked to elevated U.S. inflation and Wall Street's valuation under Trump's governance.

(With inputs from agencies.)