
U.S. Stocks advaned on Tuesday as the S&P 500 rose 0.4% earlier in the session to close at a new record, while the Nasdaq rose 0.95% to 25,976. The Dow Jones fell 0.5% to end the trading session at 48,976.
The Fed is widely expected to keep rates unchanged at 3.5%–3.75% on Wednesday, with markets focused on Chair Jerome Powell’s guidance for future policy. Investors currently price in two rate cuts by the end of 2026. Attention is also turning to earnings from Microsoft, Meta, Tesla, and Apple, which are expected to set the tone for markets in the days ahead.
The U.S. dollar fell 1.3% on Tuesday, its biggest one-day drop since April, after President Donald Trump signaled comfort with a weaker currency. When asked whether the dollar had fallen too much after losing about 10% over the past year, Trump expressed no concern about further depreciation.
Following his remarks, the dollar slid to its lowest level since February 2022, as markets interpreted the comments as tolerance for continued weakness to support trade competitiveness.
In the currency market, EURUSD pulled back to around 1.1990 in early European trading, retreating from a five-year high of 1.2082.
Precious metals contiued their strong rally. Gold climbed to a fresh record near $5,262 in Asian trading, supported by a weaker U.S. dollar, persistent geopolitical tensions, and broader economic uncertainty. Silver has risen more than 10% since yesterday as it nears its previous record high of $117.73
Safe-haven demand remains strong amid trade war threats and global instability, including Trump’s tariff warnings and geopolitical actions.
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