Global Markets Tumble Amid Tariff Tensions and Economic Uncertainty

Global financial markets faced significant turbulence as the U.S. dollar strengthened against a backdrop of economic uncertainty and trade tensions. The mixed results from megacap earnings reports contrasted with warnings of rising inflation, capturing investor unease ahead of President Donald Trump's looming trade agreement deadlines.

While Trump temporarily eased tariffs on Mexico to foster broader trade negotiations, concerns remained high over impending tariffs affecting other countries. Economic data indicated an uptick in U.S. inflation and unemployment applications falling short of expectations, sparking further debate over the Federal Reserve's rate strategy. Despite initial support from strong results from tech giants like Microsoft and Meta Platforms, these gains quickly evaporated.

The stock market's volatility underscored broader worries, with indices such as the Dow Jones and S&P 500 slipping amid shrinking investor confidence. European equities saw downturns too, partly due to corporate earnings disappointments. In currency markets, the dollar eyed monthly gains supported by prospects of trade policy clarity, while in commodities, oil prices dipped following a surprise rise in U.S. crude stocks.

(With inputs from agencies.)