Dollar Strengthens Amid Trade War Uncertainty; Nvidia Results Lack Impact on Stocks

The U.S. dollar gained strength on Thursday as Treasury yields rebounded, following mixed signals from the U.S. administration regarding tariffs. President Donald Trump’s comments about extending tariffs on Canada and Mexico fueled uncertainty, as he hinted at a delay until April 2, but a White House official later stated that the original March 2 deadline remained intact. This confusion over trade policy added volatility to global markets, affecting investor sentiment.

In Asia, stocks were generally weaker, with technology shares showing little response to Nvidia’s earnings report. Despite a strong growth forecast from the chipmaker, which powers artificial intelligence technologies, Nvidia’s stock barely moved in after-hours trading. Analysts noted the company’s performance lacked the usual volatility, and investors were cautious about its slight gross margin decline. This subdued reaction reflected the broader uncertainty in tech markets and a lack of major surprises in Nvidia’s results.

Meanwhile, the dollar continued to strengthen, with the U.S. dollar index rising 0.24% to 106.70, a level not seen in over two months. U.S. Treasury yields also ticked upward, with the two-year yield climbing to 4.09%. However, fears over potential U.S. economic slowdown, exacerbated by Trump’s trade policy and soft economic indicators, have led to growing expectations that the Federal Reserve may cut interest rates later this year.

Gold prices remained steady amid concerns over the global trade outlook, while Bitcoin struggled to maintain its momentum, hovering around $85,000. Analysts cautioned against jumping into the cryptocurrency market too soon, predicting further volatility ahead. Oil prices, on the other hand, saw a slight rebound, with Brent crude futures rising to $72.75 per barrel after dipping to two-month lows earlier this week.

SOURCE: REUTERS