By The US financial market is at the center of global attention as Federal Reserve Chair Jerome Powell reaffirms the central bank’s commitment to tackling inflation, despite growing concerns over the economic impact of tariffs.
The S&P 500 and Dow Jones Industrial Average posted modest gains, while the Nasdaq composite declined, reflecting investor uncertainty. Powell’s comments that the Fed is in no hurry to cut interest rates have added to the cautious sentiment. Higher rates could pressure stock prices and slow economic growth by making borrowing more expensive.
The recent announcement of tariffs on foreign steel and aluminum imports has further complicated the economic outlook, with fears of a trade war weighing on markets. The yield on the 10-year Treasury rose to 4.53%, signaling investor unease.
As investors await the US consumer price index report for January, the focus remains on inflation trends and their implications for monetary policy. The US dollar edged up against the Japanese yen, while the euro and Indian rupee remained stable.
In the commodities market, benchmark US crude fell to 73.04abarrel,andBrentcrudedeclinedto73.04abarrel,andBrentcrudedeclinedto76.74 a barrel, reflecting concerns over global demand and trade disruptions.
With the US market setting the tone for global trends, investors are closely monitoring developments to navigate the uncertain economic environment.