Global Financial Unease: Stocks Tumble as Bond Yields Soar

Global financial markets experienced significant turbulence on Tuesday, as stocks fell and long-term bond yields hit multiyear highs. This has stirred investor concern over international financial stability, with the dollar gaining and gold reaching record heights.

In the U.S., a divided federal appeals court declared most of President Donald Trump's tariffs illegal, allowing them to remain until mid-October pending appeal. Meanwhile, U.S. manufacturing contracted for the sixth month due to tariffs, although some relief came from a surge in AI-driven investments.

Financial strains were evidenced as the Dow Jones, S&P 500, and Nasdaq suffered declines. Bond yields in Europe and the U.S. spiked, with particular attention on Britain and France amidst their upcoming fiscal plans. Currency markets saw volatility, while precious metals and oil climbed in response to market jitters.

(With inputs from agencies.)