Global Stocks Touch Fresh Records As Dollar Slides Ahead Of Fed
Global equity markets extended their rally on Tuesday, with stocks climbing for a fifth straight session and touching record levels, as investors turned increasingly optimistic over US corporate earnings.
At the same time, the US dollar weakened sharply, sinking to its lowest point in nearly four years ahead of the Federal Reserve’s policy announcement.
On Wall Street, trading was mixed but largely positive. The S&P 500 closed at a record high, while the Nasdaq Composite also advanced, supported by strong earnings sentiment. The Dow Jones Industrial Average, however, ended lower after being dragged down by sharp declines in select heavyweights.
The Dow fell 408.99 points or 0.83% to 49,003.41. In contrast, the S&P 500 rose 28.37 points or 0.41% to 6,978.60, while the Nasdaq gained 215.74 points or 0.91% to 23,817.10.
Losses in Boeing and UnitedHealth weighed heavily on the Dow. Boeing slid 1.6%, while UnitedHealth plunged about 20% after warning that its 2026 revenue would shrink. The decline in UnitedHealth alone accounted for roughly 420 points of downward pressure on the index. Health insurers broadly came under pressure following a lower-than-expected Medicare reimbursement proposal for 2027.
Meanwhile, investors continued to assess a wave of major earnings releases, including results from Boeing and United Parcel Service, which said it would cut up to 30,000 operational roles this year. Attention is now turning to upcoming earnings from the so-called Magnificent Seven, including Microsoft, Apple, Tesla and Meta Platforms.
Beyond the US, global markets also pushed higher. MSCI’s gauge of stocks worldwide rose 0.85% to 1,053.09, marking its longest winning streak this year. The index hit an intraday record of 1,053.88. In Europe, the STOXX 600 ended up 0.58%, supported by a 1.8% jump in banking stocks.
Currency markets were dominated by a sharp slide in the greenback. The dollar index fell 0.9% to 96.23, after touching a four-year low of 95.566, putting it on track for its biggest daily percentage drop since April. The euro strengthened 0.81% to US$1.1975, while sterling climbed 1.14% to US$1.3833.
“The dollar has had over the past ten days one of the biggest moves it’s had in the past five years… It puts a huge pressure on commodities, and we’re seeing oil up. We’re seeing commodities up, and you’re seeing all those stocks moving up in a very aggressive way,” said Adam Rich, deputy chief investment officer and portfolio manager at Vaughan Nelson Investment Management in Houston.
The dollar also weakened against the Japanese yen, sliding 1.23% to 152.26, its lowest level since late October. The Korean won strengthened 0.97% to 1,431.85 per dollar after earlier losses, as South Korea sought to reassure the US over its commitment to a trade deal following fresh tariff threats from President Donald Trump.
Markets are now bracing for the Federal Reserve’s policy statement, due on Wednesday. While the central bank is widely expected to keep interest rates unchanged, political developments surrounding the Fed leadership have added an extra layer of uncertainty.
Commodities rallied strongly amid the weaker dollar and ongoing geopolitical concerns. Spot gold surged 3.19% to US$5,174.09 an ounce after hitting a record intraday high, while spot silver jumped 7.93% to US$121.13 an ounce.
U.S. crude oil settled up 2.9% at US$62.39 a barrel, while Brent crude gained 3.02% to US$67.57 per barrel, as a winter storm disrupted production and halted US Gulf Coast crude exports over the weekend.
Source: Reuters
