Market Steady as Investors Gauge Tariff Fatigue and Inflation Data

Stocks and dollar remained stable with focus on U.S. inflation data and Federal Reserve's stance on rate cuts. President Trump's tariff threats add to uncertainty. Investors are cautious, awaiting Powell's testimony and inflation figures, while bond yields impact gold and oil prices show slight declines.

Stocks and the dollar remained stable on Wednesday, with investors focusing on upcoming U.S. inflation data that could support Federal Reserve Chair Jerome Powell's view against hasty rate cuts. An increase in Treasury yields pressured gold, which retreated from record highs.

An air of caution prevails in the market amidst the uncertainty stirred by President Trump's recent tariff threats, including the announcement of 25% tariffs on steel and aluminum. This has led to a tempered outlook on potential Fed rate cuts this year, likely in June.

In his testimony to Congress, Powell reaffirmed a patient stance on rate cuts, citing a stable economy but readiness to act if necessary. European markets showed slight gains, with analyses suggesting that Trump's tariff rhetoric might be more strategic than substantive.

(With inputs from agencies.)