Global Market Jitters: Stocks Fall as Dollar Climbs

Global stocks dipped for a third day, while the dollar rose on Federal Reserve Chair Jerome Powell's comments suggesting a slower rate cut path. The U.S. labor market data and inflation levels played a critical role in shaping the market's reaction to economic policies and fiscal concerns.

Global stocks tumbled for the third consecutive day on Thursday, accompanied by a rise in the U.S. dollar, as signals from the Federal Reserve indicated a slower trajectory for rate cuts than previously anticipated. Labor market data showed a drop in unemployment benefits claims, while the producer price index rose modestly, aligning with expectations.

Federal Reserve Chair Jerome Powell's statement highlighted ongoing economic growth and robust job numbers, keeping interest rate decisions cautious. The market responded with volatility due to potential economic policy shifts under President-elect Donald Trump, whose promised tariffs and tax policies raised concerns about inflation and fiscal deficits.

Despite initial stock rallies post-election, key indexes like the Dow Jones and S&P 500 have experienced downturns. The shifting financial landscape, characterized by rising bond yields and a stronger dollar, reflects investor uncertainty regarding future monetary policy and economic conditions.

(With inputs from agencies.)