Markets Fall on Trump Tariff Threat, Geopolitical Risks

US stocks and the dollar declined after President Trump pledged to impose unilateral tariffs on numerous trading partners within two weeks, reigniting trade tensions and unsettling global markets. The tariff threats, along with geopolitical risks such as rising tensions in the Middle East and a Boeing jet crash in India, contributed to broad losses in major indices, especially in the energy, financial, and industrial sectors. Safe-haven assets like gold and Treasuries rallied as investors sought security amid the uncertainty. Softer-than-expected US inflation data increased expectations for Federal Reserve interest rate cuts later this year, adding to the dollar's weakness. Despite the overall downturn, Oracle shares surged on strong earnings, and Oklo jumped after winning a significant US Air Force contract. Investors are now watching upcoming producer price data for further signals on Fed policy amid ongoing trade and geopolitical uncertainties.