Markets in Flux: Tariffs and Inflation Shape Global Economy

On Tuesday, global equities slipped from record highs while U.S. Treasury yields rose. Investors digested a slight rise in U.S. inflation and positive quarterly reports from major banks. The impact of tariffs remains a focal point, although not as severe as anticipated, according to economists.

MSCI's global equities index declined on Tuesday after hitting a record peak, with U.S. Treasury yields climbing to their highest in over a month. This market reaction follows a small uptick in U.S. inflation and mildly positive quarterly earnings from major banks.

Economic data revealed a 0.3% rise in U.S. consumer prices for June, aligning with forecasts and marking the largest gain since January. Increased prices were noted across various goods, reflecting the effects of the Trump administration's tariff policies.

Despite initial concerns, experts like Brian Jacobsen of Annex Wealth Management suggest that while tariffs matter, their impact on inflation is less severe than feared. On Wall Street, tech-heavy Nasdaq gained strength from Nvidia's announcement to resume sales in China, boosting its shares by 4%.

(With inputs from agencies.)