Global Stocks Dive Amid Soaring Dollar and Interest Rate Jitters

Global stocks fell sharply, and the dollar surged to a two-year high, after strong U.S. jobs data suggested potential halts to Fed rate cuts. Traders anticipate more inflation due to Trump's expected policies on tariffs and taxes, affecting market sectors like technology and finance.

Global stocks experienced significant declines on Monday as the dollar surged to its highest level in more than two years. This came after robust U.S. jobs data released last week led traders to reconsider the possibility of the Federal Reserve having concluded its series of interest rate cuts.

Strong employment figures, with 256,000 workers added to nonfarm payrolls in December, coupled with emerging expectations of increased inflation due to the incoming U.S. administration's policies, have challenged previous assumptions about further rate reductions. As a result, U.S. Treasury prices continued to face selling pressure, maintaining yields near their recent peaks.

The market's attention now turns to the upcoming inflation data, which could impact future Fed rate decisions. Wall Street stocks slid, influenced by European market trends, with tech and financial sectors weighing heavily. Energy price surges contributed to the market's volatility, adding to anxieties about persistent inflation.

(With inputs from agencies.)