Tariffs Rattle Markets as Fed Chair Prepares Testimony

Global markets faced turbulence following the announcement of new US tariffs on steel and aluminum. Wall Street's major indices dropped before Jerome Powell's congressional testimony. Asian and European markets showed mixed reactions. US-China trade tensions persist, with potential impacts on inflation and Fed interest rate decisions.

The global financial market was unsettled on Tuesday due to new tariffs imposed by the White House on steel and aluminum imports. These developments precede Federal Reserve Chair Jerome Powell's semi-annual testimony before Congress, further highlighting investor anxiety.

Wall Street's indices reflected this uncertainty as futures for the S&P 500, Dow Jones, and Nasdaq declined by 0.5%, 0.3%, and 0.5%, respectively. Despite the market downturn, Coca-Cola and DuPont posted unexpected gains, buoyed by strong sales figures.

Asian markets mostly declined following the tariff announcement, with notable drops in Hong Kong and Shanghai. Meanwhile, European markets showed slight increases. As trade tensions with China soar, experts warn that US markets may experience further fluctuations, depending on tariff negotiations and Federal Reserve policies.