Market Jitters: Tariff Threats and AI Spending Shake Global Stocks

Global stocks paused as Trump's AI spending rally faded, with uncertainty around tariff plans weighing on markets. Treasury yields rose amid inflation concerns. The MSCI index stayed flat while technology shares rose sharply. Tariff threats on China, Mexico, and Canada influenced global currency and oil markets.

Global stocks steadied on Thursday as investors' excitement over Donald Trump's ambitious AI spending plans waned, giving way to caution regarding potential tariff measures. Concerns were amplified by an unexpected rise in U.S. unemployment filings.

Marking a critical juncture, bond investors propelled Treasury yields upward for the second consecutive day. Many brace for inflationary pressures that could prompt the Federal Reserve to act on interest rates. Guy Miller from Zurich Insurance observed Trump's restraint, allowing financial markets to adjust.

European and Asian markets experienced varied reactions, with some technology stocks climbing after Trump's AI announcements. However, looming tariff threats cast uncertainty over global trade, affecting currency markets and keeping oil prices under pressure.

(With inputs from agencies.)