Turbulence in Global Markets: Tariffs, AI, and Commodities Take Center Stage

Global markets faced volatility as confusion over U.S. tariffs emerged, affecting Wall Street futures and the dollar. AI sector enthusiasm is set for a test with Nvidia's upcoming results. Meanwhile, commodities such as gold and oil showed mixed movements, influenced by geopolitical tensions and shifting tariff policies.

Wall Street futures and the dollar experienced a downturn in Asia on Monday amid renewed confusion regarding U.S. tariffs, reigniting the 'sell America' sentiment. This coincided with skepticism in the AI sector, set to be tested by tech giant Nvidia's earnings report later this week.

Further downcast thoughts surrounded trade as the U.S. Supreme Court invalidated President Trump's emergency tariffs. Trump announced a new 10% rate initially, which quickly evolved to 15%, leaving analysts and officials scrambling with uncertainty over its implementation. Asian markets reacted variably, with South Korea and Taiwan enjoying gains.

Concerns mounted with implications for U.S. fiscal health as estimates placed an increase in the fiscal deficit with projected $170 billion revenue repayments. Markets stayed alert to these developments and sought stability in commodities like safe-haven gold, which gained alongside mixed movements in the oil markets.

(With inputs from agencies.)