Dollar Soars Amid Tariff Talks and Global Market Jitters

The US dollar reached a six-month high and Treasury yields surged as investors reacted to potential inflation risks under a second Trump presidency, driven by possible aggressive tariffs and pro-growth policies. This has led to reduced expectations for Federal Reserve interest rate cuts. The market's focus on inflation risks was further fueled by reports of Trump's potential foreign policy appointments and the Republican party's congressional gains. These developments have negatively impacted US and European stock markets, with concerns over tariffs affecting global trade dynamics.