Global Stocks Break Records Amid Tariff Turmoil

Global stocks hit record highs, while US Treasury yields fell as soft US data sparked hope for interest rate cuts. Declining retail sales and factory output raised economic concerns. Meanwhile, US President Trump contemplated reciprocal tariffs, and investors focused on potential global trade implications.

Global stocks surged to a record high on Friday, fueled by hopes that the Federal Reserve might act more aggressively in slashing interest rates following disappointing U.S. economic data. Retail sales witnessed a sharp decline, indicating tightening consumer spending amidst rising prices and tariff uncertainties.

President Trump instructed his economic team to consider reciprocal tariffs, sparking fears of an impending global trade war. Further, Vice President JD Vance’s comments at the Munich Security Conference added to tensions, overshadowing important discussions on Ukraine and critical mineral deals.

On Wall Street, the Nasdaq marked a significant weekly increase, while the S&P 500 and Dow Jones saw varied results. The global MSCI index reached intraday records, and despite a fall in key U.S. bond yields and oil prices, market participants remained focused on the potential impact of U.S. tariff policies.