Global Markets Juggle Tariffs, Fed Hopes Amid Soft U.S. Data

A rise in global stocks and dip in U.S. Treasury yields on Friday followed soft U.S. data and tariff announcements, sparking hopes for Fed interest rate cuts. U.S. retail sales and factory output both declined. Market reactions were mixed, amid global trade tension and security conference developments.

Global stocks saw an uptick on Friday while U.S. Treasury yields fell, inciting optimism for a more aggressive Federal Reserve interest rate cut following the release of soft U.S. data and new tariff announcements.

Retail sales in the United States dropped by 0.9% in the past month, marking the most significant decline since March 2023, far below economists' expectations. Additionally, factory output fell by 0.1% due to a decrease in motor vehicle production.

Market focus is on U.S. President Donald Trump’s directive for reciprocal tariffs and the Munich Security Conference, where Vice President JD Vance criticized Europe’s immigration and free speech policies. Market indices showed mixed reactions, with the Dow Jones falling and the S&P 500 and Nasdaq seeing slight rises.