Global Markets React to U.S. Economic Policy Turbulence

Global financial markets are experiencing a downturn as Wall Street share futures and the dollar decline while Treasury yields climb. This unease is further aggravated by Moody's recent downgrade of the U.S. credit rating, underscoring apprehensions over America's mounting $36 trillion debt and prospective policy shifts.

U.S. Treasury Secretary Scott Bessent dismissed the downgrade but warned trade partners of maximum tariffs if they don't negotiate fair deals. As he heads to a G7 meeting, U.S. Vice President JD Vance has engaged with European Commission President Ursula von der Leyen to deliberate on additional trade issues.

The tariff standoff is affecting consumer sentiment, with markets closely watching upcoming earnings reports. Analysts are eyeing China's April retail and industrial data for more insights. Meanwhile, global markets show varied reactions, and commodities like gold and oil are displaying cautious stability amidst the turmoil.

(With inputs from agencies.)