Dollar Surges, Stocks Set to Fall on Trump Tariffs: Markets Wrap

The U.S. dollar surged and stocks were set to fall on Monday as investors braced for President Donald Trump's threatened tariffs on Mexico, Canada, and China. The greenback hit a two-year high against a basket of currencies, while the S&P 500 futures pointed to a decline of around 1% at the open. The yield on 10-year Treasury notes fell to their lowest level since October 2016.



The U.S. dollar index, which tracks the greenback against a basket of six major currencies, rose 0.4% to 98.37, its highest level since May 2017. The dollar's strength was driven by safe-haven demand as investors sought refuge from the uncertainty surrounding Trump's tariff threats.

The S&P 500 futures were down 1% at 2,845.50, pointing to a decline of around 30 points at the open. The Dow Jones Industrial Average futures were down 1.1%, while the Nasdaq 100 futures were down 0.9%.

The yield on 10-year Treasury notes fell to 1.85%, its lowest level since October 2016, as investors sought the safety of U.S. government bonds. The yield on 30-year Treasury bonds fell to 2.27%, its lowest level since October 2017.

The Mexican peso fell to a record low against the dollar, while the Canadian dollar also weakened. The Mexican peso was down 1.5% at 19.97 per dollar, while the Canadian dollar was down 0.5% at 1.35 per dollar.

The threat of tariffs on Mexico, Canada, and China has raised concerns about the potential impact on global trade and economic growth. The International Monetary Fund has warned that a full-blown trade war could lead to a global recession.

Investors are also keeping an eye on the U.S. Federal Reserve, which is expected to cut interest rates this week to support the economy. The Fed has signaled that it is prepared to act if necessary to offset the impact of trade tensions and other headwinds.



In conclusion, the U.S. dollar surged and stocks were set to fall on Monday as investors braced for President Donald Trump's threatened tariffs on Mexico, Canada, and China. The greenback hit a two-year high against a basket of currencies, while the S&P 500 futures pointed to a decline of around 1% at the open. The yield on 10-year Treasury notes fell to their lowest level since October 2016. The Mexican peso and Canadian dollar weakened, while investors sought the safety of U.S. government bonds. The threat of tariffs has raised concerns about the potential impact on global trade and economic growth, while investors await the U.S. Federal Reserve's decision on interest rates this week.