Market Waves: Global Stocks Dip as Trump Policies Take Center Stage

Global stock markets faced a downturn after a series of gains, influenced by U.S. President-elect Trump's proposed economic policies. The dollar reached a four-month high, while concerns about inflation and treasury yields affected market dynamics. Investors eagerly await the upcoming consumer price index report for insights into inflation.

Global stock markets experienced a decline on Tuesday after an impressive five-session rise, as investors assess the potential impact of U.S. President-elect Donald Trump's anticipated second-term economic policies. The U.S. dollar climbed to its highest level in over four months, buoyed by expectations of growth and inflation under Trump's administration.

The S&P 500 has reached record highs, primarily driven by the surge in bank shares expected to thrive with reduced regulations. Small-cap stocks have also soared amid hopes of decreased competition due to tariffs and favorable tax policies. Bitcoin has mirrored this upward trend, propelled by Trump's cryptocurrency-friendly stance, approaching the $90,000 mark.

Despite strong gains, concerns linger that Trump's strategies may trigger renewed inflation, driving U.S. Treasury yields and the dollar higher. The forthcoming consumer price index (CPI) report for October will provide crucial insights into inflationary trends. Market reactions followed mixed performances in stocks and significant developments in currency and commodity markets.

(With inputs from agencies.)