Asia Stocks Fall as Futures Drop on Trump Tariffs, Fed Rift
Asia stocks slipped as Wall Street futures tumbled on renewed fears of US tariff threats and Federal Reserve controversies. S&P 500 futures fell around 0.5% and Nasdaq futures dropped 0.6%, while the Dow futures eased about 0.4%. In Asia, Tokyo’s Nikkei 225 declined 0.8%, Hong Kong’s Hang Seng shed 1.1% and Shanghai Composite lost 0.5%.
Market sentiment soured after President Trump threatened tariffs on countries imposing digital taxes, reigniting trade tensions. Simultaneously, disagreement over Fed policy and criticism of the central bank’s independence fueled uncertainty. The US dollar index rose to 105.2, pushing the euro below $1.07. Benchmark 10-year Treasury yields dipped to 3.55% amid risk-off flows.
Commodity markets also reacted: Brent crude slid 1.3% to $74.2 a barrel, while gold edged up 0.4% to $1,945 per ounce as investors sought safe havens. Analysts warn that continued political friction and Fed policy disputes may prolong volatility, keeping traders cautious in the near term.
Neutral
The news highlights equity market volatility driven by US political and monetary policy risks, without direct implications for cryptocurrency trading. While risk-off sentiment may spur short-term safe-haven flows—including into digital assets—the lack of specific crypto references suggests a neutral impact. Historically, equity sell-offs tied to trade tensions and Fed uncertainty have produced mixed crypto responses, with any initial uptick often offset by broader risk aversion among traders.