Market Turmoil: Trump's Fed Maneuvers and Global Economic Ripples

Market anxiety intensified on Tuesday following President Trump's unprecedented decision to dismiss a Federal Reserve governor, shaking confidence in the Fed's autonomy. This action compounded global economic jitters, already heightened by political instability in France and stalled progress in U.S.-France relations over digital taxes.

Global equity markets responded with declines, led by sharp drops in U.S. Treasury futures and major European indices. Investor sentiment soured as Trump's tariff threats resurfaced, creating an uncertain climate for both global trade and domestic monetary policy.

In anticipation of further economic indicators, including U.S. consumption prices and Nvidia's earnings, financial strategists predict volatile market movements. The euro strengthened slightly amidst the turmoil, while the dollar index faced a downturn. Meanwhile, oil prices retracted, with attention on geopolitical tensions affecting supply routes.

(With inputs from agencies.)