Following Tariff Report, Stocks Rise & Dollar Declines – Europe Market Wrap
World stocks soared and the currency fell on reports that Trump’s incoming economic team is mulling a gradual increase in trade taxes as a plan to prevent inflation surges.
Nasdaq 100 futures rose 0.6%, putting the underlying index on track to end its two-day losing streak. According to sources familiar with the situation, progressive tariff hikes of roughly 2% to 5% per month are being discussed, rather than harsh one-time increases. The so-called Magnificent Seven tech stocks rose in premarket trade, with Nvidia and Tesla up more than 2%.
The data pushed the Dollar index lower after five straight days of gains, but global bond markets remained stable following a steep rise in borrowing prices in recent days. However, an earlier decline in 10-year Treasury rates has receded, keeping borrowing costs close to the October 2023 highs reached Monday when traders reduced expectations on Fed interest-rate cuts.
In Europe, the Stoxx 600 index rose 0.5%, as French equities outperformed, boosted by the prospect of a political accord that could prevent a government collapse. Earlier, Chinese stocks posted their greatest performance in a month.
Recent falls on the S&P 500 have erased its 2025 gains, with mood harmed by the threat of broad new curbs on the selling of advanced AI chips by Nvidia and its partners.
