Global Markets React to U.S. Tariff Hikes and Fed Signals

Global stock markets showed stability despite new U.S. tariffs on steel and aluminum. Treasury yields rose as Fed Chair Jerome Powell outlined a cautious approach to rate changes. Uncertainty prevails with potential global tariffs, impacting investor decisions. Markets speculate on future Fed rate cuts and currency fluctuations.

Global stock markets recovered from early declines, closing flat even as U.S. Treasury yields climbed. This followed President Donald Trump's decision to increase tariffs on steel and aluminum imports to 25%, which drew international condemnation. Fed Chair Jerome Powell's remarks on a patient approach to rate policy also influenced market behavior.

Investors remain uncertain amid global tensions, with indexes like the S&P 500 making slight gains. Coca-Cola shares notably led the Dow Industrials upward, helping offset earlier losses. Powell emphasized that the Fed would focus not on tariff policies themselves but on their economic impact, hinting at continued market volatility.

The yield on U.S. 10-year Treasury notes rose, with markets adjusting their expectations for Fed rate cuts. The dollar experienced minor fluctuations against major currencies, while oil prices increased due to Russian and Iranian supply concerns. The economic landscape remains complex, with investors keeping a close watch on developments in policy and global trade.

(With inputs from agencies.)