U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
U.S. Dollar Strengthens on Fed Rate Expectations
On Tuesday, the U.S. dollar maintained its position at a 2.5-month high, buoyed by expectations that the Federal Reserve will adopt a cautious approach to interest rate cuts. This strength, supported by rising Treasury yields, exerted pressure on the yen, euro, and sterling, continuing a trend observed over recent weeks as data revealed the U.S. economy's resilience.
Diverging Views Among Federal Reserve Policymakers
Four Federal Reserve officials expressed support for additional rate cuts on Monday, yet their opinions varied regarding the pace and extent of these cuts. Market participants are now anticipating an 89% probability of 25 basis points cut at the Fed's upcoming meeting on November 6-7, a significant increase from a 50% chance just a month prior, as reported by the CME FedWatch tool.
According to Charu Chanana, chief investment strategist at Saxo, "The market’s aggressive Fed rate cut expectations have been questioned, with U.S. exceptionalism remaining intact and Fed speakers indicating gradual cuts."
Political Landscape Influences Dollar Performance
With the U.S. election two weeks away, the likelihood of former President Donald Trump winning on November 5 is further bolstering the dollar, as his tariff and tax policies are anticipated to maintain high U.S. interest rates. Analysts warn of potential volatility as investors position themselves ahead of the election results.
"While a Trump victory may provide short-term market support, the long-term outlook could differ," strategists at PineBridge Investments noted, contrasting a Trump win with a "status quo" outcome under Vice President Kamala Harris.
Market Reactions and Global Implications
The yield on the benchmark U.S. 10-year Treasury note reached its highest level since late July, last recorded at 4.218%. This upward trend in U.S. yields has contributed to the yen's decline, which hit a near three-month low of 151.10 per dollar on Tuesday.
As Japan approaches its general election on October 27, market optimism surrounds the ruling Liberal Democratic Party (LDP), despite varying opinion polls.
