Tariff fears weaken stocks, dollar at six-month high, yen weak: what will move markets on Tuesday?
There are growing fears that Republicans Rubio and Walz may take control of U. S. foreign policy and take a tougher stance on China and NATO.
Major U. S. stock indexes are falling, with small-company stocks down 1.5% and the dollar strengthening to hedge against tariff risk. Risk aversion on Wall Street intensified for the first time since Donald Trump's election victory last week. This was due to heightened concerns over possible changes in tariffs and trade policy due to key appointments in the new administration.
President Trump is reportedly considering Senator Marco Rubio (R-FL) for Secretary of State and Congressman Mike Walz (R-FL) for National Security Advisor. Both are ardent hawks on China and NATO, and a tough stance by the U. S. could lead to a deterioration in key geopolitical and trade relations.
the fact that investors are expecting the release of key inflation data on Wednesday adds to the caution. Economists expect annual inflation in October to be 2.6%. As of midday in New York, none of the major stock indexes #rose , while the index of small indexes, including the Russell 2000, fell by 1.5%; 10 out of 11 sectors of the S&P 500 index were negative, and only the consumer staples sector was slightly positive. Chinese stocks fell sharply and major U. S. stocks fell 5-9% as concerns over potential tariffs spooked investors.
the dollar, seen as a hedge against tariff risk, strengthened and the currency-weighted index reached its highest level since May 2024.
the Japanese yen fell to 154.7 yen per dollar, wiping out the gains from the Bank of Japan's intervention in August. The Chinese yuan and the euro also weakened, with the euro falling below $1.06. Government bond yields rose, with the 10-year bond yield rising eight basis points to 4.
Read us at: Compass Investments
#CryptoTrends #FinTechInnovations #CryptoAdoption #DigitalCurrency
