Global Markets React to Tariff Policy Speculations

Global stocks rose as the U.S. dollar index fell following President-elect Donald Trump's denial of a report on less-aggressive tariff policies. Market responses included gains in the S&P 500 and Nasdaq, a rise in European stocks, and fluctuations in currency and treasury yields, amidst ongoing policy uncertainty.

Global stocks witnessed an uptick while the U.S. dollar index saw a decline on Monday following President-elect Donald Trump's denial of a report claiming his administration would likely adopt a less-aggressive tariff policy than previously stated. European stocks and currencies climbed, prompted by an earlier Washington Post report suggesting Trump's aides were considering tariffs on key sectors.

In a social media post, Trump dismissed the report as erroneous and termed it "just another example of Fake News." Matt Orton, chief market strategist at Raymond James, St. Petersburg, Florida, remarked, "It's going to be an interesting year, highlighting the expected volatility due to uncertainty in policy, politics, inflation, and rates."

The financial markets reacted with the S&P 500 and Nasdaq finishing higher, led by gains in communication services and technology sectors, while the Dow experienced a slight drop influenced by consumer staples stocks. In the bond market, long-term Treasury yields rose amidst speculations regarding tariff policy adjustments.

(With inputs from agencies.)