Global Markets React to Strong U.S. Economy, Tariff Uncertainty

U.S. stocks dipped while bond yields and the dollar rose amid strong economic data, affecting anticipation of Federal Reserve rate cuts. European markets held gains despite U.S. political developments. Eurozone inflation increased slightly due to higher energy costs, with Germany seeing an unexpected inflation rise.

On Tuesday, U.S. stocks declined as bond yields and the dollar climbed following strong economic data from the end of last year, reducing the likelihood of Federal Reserve rate cuts.

Positive momentum in European stocks maintained earlier gains despite evolving U.S. tariff news. Meanwhile, eurozone inflation rose, driven by increased energy costs, with Germany experiencing more than anticipated inflation.

As investors adjusted their Federal Reserve rate cut expectations, key indexes and global markets reacted dynamically to the unfolding economic and political landscape.

(With inputs from agencies.)