U.S. Dollar Index Reaches Two-Year High

Global stock markets fell on Monday, driven by a surge in oil prices and rising bond yields, as investors prepared for this week's crucial U.S. Consumer Price Index (CPI) report. The U.S. dollar reached its highest level in over two years, following a strong jobs report that has led many to speculate that the Federal Reserve may halt interest rate cuts for the foreseeable future. With oil prices exceeding $80 per barrel due to new U.S. sanctions on Russian oil exports, inflation concerns have intensified, prompting a reassessment of market expectations regarding future rate adjustments. Analysts have indicated that the strong employment data may signal an end to the Fed's easing cycle, with inflation remaining above targeted levels. The 10-year Treasury yield climbed to a 14-month high of 4.79%, further tightening market conditions. As investors brace for the upcoming CPI data, the prospect of continued inflation and its impact on monetary policy remains a significant concern.