US Stocks Open Lower as Tariff Uncertainty and Fed Independence Debate Intensify

U.S. stock markets opened lower as investors reassessed the likelihood of a Federal Reserve rate cut amid resilient economic growth and persistent inflation pressures. The Dow Jones, S&P 500, and Nasdaq all declined, weighed down by weakness in AI-linked tech stocks and uncertainty following a federal appeals court ruling that deemed most of President Donald Trump's global tariffs unlawful, limiting tariff authority to Congress. This ruling added to market uncertainty alongside concerns about the Federal Reserve's future independence after a court hearing and upcoming Senate hearings on Trump's Fed nominees. Additionally, bond yields rose and gold hit record highs as investors sought safer assets amid budget deficit worries. The market retreat reflects investor caution following Federal Reserve Chairman Jerome Powell's ambiguous comments on monetary policy and the fading odds of an imminent rate cut. Overall, the combination of legal challenges to tariffs, mixed economic indicators, and monetary policy uncertainty contributed to a broadly negative market sentiment.