Global Markets React to Fed Chair Powell's Comments

Global markets are experiencing mixed reactions following comments from Fed Chair Powell, who dampened expectations of imminent rate cuts. In the U.S., major indices like the Dow, S&P 500, and Nasdaq experienced declines, with Tesla notably falling due to concerns over EV tax credits. Meanwhile, Asia's markets presented a mixed picture; Japan's Nikkei 225 saw gains, whereas South Korea's Kospi and Australia's S&P/ASX 200 declined. Hong Kong's Hang Seng futures indicated a positive opening, driven by a significant rise in China's retail sales.

In Europe, optimism in the tech sector provided some relief as firms like ASML and Siemens projected promising growth. However, overall market sentiment remained cautious, reflecting Powell's call for patience regarding rate cuts. The dollar surged, reaching a one-year high, impacting currencies like the yen, euro, and pound sterling. Despite the turbulence, the U.S. ETF market showed resilience with substantial inflows. Investors globally are now closely watching economic data from China and assessing the broader implications of the Fed's policy direction.