Global Markets Tumble as U.S. Recession Fears and Tariff Concerns Weaken Dollar

The dollar slides to multi-month lows while the yen and euro gain strength, as global stocks face steep sell-offs driven by U.S. economic uncertainty.

• The U.S. dollar index fell to its lowest level since October, driven by recession fears and declining bond yields, while the yen reached a five-month high as a preferred safe-haven currency.
• Global stock markets, including Wall Street and Asian indices, saw significant losses, with the Nasdaq dropping 4% and Japan's Nikkei hitting a six-month low before recovering slightly.
• President Trump's recent comments about a 'period of transition' and ongoing tariff policies have intensified concerns about U.S. economic growth and global trade stability.
• The euro climbed to a four-month high against the dollar, buoyed by optimism over potential German defense spending agreements and reduced yield gaps between U.S. and European bonds.
• Japan's trade minister failed to secure exemptions from U.S. tariffs on steel, aluminum, and cars, raising concerns about further trade tensions between the two nations.

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