The U.S. dollar index strengthened while MSCI’s global equities gauge declined as investors reacted to signs of higher U.S. inflation and prepared for President Trump’s Aug 1 trade announcement.
June’s inflation increase was driven in part by higher import costs from tariffs, and weekly jobless claims came in below expectations, suggesting continued resilience in the labor market.
The Federal Reserve held interest rates steady and emphasized the need for additional data before making policy changes, a stance that added to market caution and uncertainty about the near‑term direction of monetary policy.
Small‑cap stocks underperformed markedly, reflecting investor preference for lower‑risk assets. Oil prices fell amid concerns about the impact of trade tensions on global demand, while gold rose 0.51% as traders sought a safe‑haven alternative.