Wall Street closes mixed as dollar weakness accelerates on Trump's Powell attacks

​​​US markets close mixed with tech stocks providing late session support

​Wall Street delivered a mixed performance overnight, with the major indices heading in different directions as investors weighed competing forces. The Dow Jones Industrial Average fell 0.25%, weighed down by traditional industrial and financial stocks facing headwinds.

​The S&P 500 managed to close flat, demonstrating the market's ability to hold steady despite mounting uncertainties. This resilience suggests underlying strength in the broader market, even as sector rotation continues to play out.

​The Nasdaq Composite emerged as the standout performer, gaining 0.31% as technology shares provided crucial late-session support. This outperformance reflects continued investor appetite for growth stocks despite macroeconomic concerns.

​Dollar plunges to multi-year lows after Trump renews Powell criticism

​The US dollar suffered its steepest decline in months overnight, hitting multi-year lows against several major currencies following President Trump's renewed attacks on Federal Reserve (Fed) chairman Jerome Powell. The comments included speculation about replacing Powell early, undermining confidence in central bank independence.

​Trump's criticism has created significant uncertainty about future monetary policy direction, with markets now questioning the Fed's ability to operate without political interference. This uncertainty is translating directly into reduced demand for dollar-denominated assets.

​The euro and Swiss franc were particular beneficiaries of dollar weakness, with both currencies posting substantial gains during overnight trading. This strength reflects safe-haven flows as investors seek alternatives to the embattled greenback.

​Powell testimony reinforces cautious Fed stance amid tariff uncertainty

​Powell's congressional testimony overnight reinforced the central bank's cautious approach to future rate cuts, with particular emphasis on tariff-driven inflation risks. His comments suggested the Fed remains wary of premature policy easing.

​Powell specifically highlighted how potential tariff policies could complicate monetary policy decisions by creating upward pressure on prices. This represents a notable shift in Fed communication, acknowledging the intersection between trade policy and inflation control.

​His cautious tone has led markets to recalibrate expectations for aggressive rate cuts, with traders now pricing in a more gradual easing cycle. This adjustment is contributing to uncertainty about the economic outlook and asset valuations.

​Middle East tensions ease as ceasefire holds, supporting market sentiment

​Geopolitical tensions showed signs of easing overnight as the Israel-Iran ceasefire continued to hold firm, providing much-needed stability to global markets. This development helped remove some risk premium from energy markets and supported broader sentiment.

​Oil prices edged higher despite the reduced geopolitical tensions, as supply concerns from other regions continued to underpin crude markets.

​Corporate movers highlight sector divergence with Nvidia reaching new highs

​Corporate developments overnight showcased the stark performance divergence across different sectors and companies. Nvidia reached fresh record highs, solidifying its position as the world's most valuable company and demonstrating continued strength in artificial intelligence themes.

​Tesla provided a stark contrast, falling 3.8% on disappointing European sales figures that raised questions about electric vehicle (EV) demand in key markets. The decline highlights ongoing challenges facing the EV sector despite long-term growth prospects.

​Traditional industrial companies faced headwinds, with FedEx and General Mills sliding after providing disappointing profit forecasts. These results reflect broader concerns about consumer spending patterns and operational cost pressures.

​However, technology remained a bright spot beyond Nvidia, with BlackBerry and Micron Technology jumping on upbeat outlooks.

​Asian markets trade cautiously as dollar weakness supports regional currencies

​Asian markets adopted a cautious stance during overnight trading, with most indices showing rangebound behaviour as investors processed the implications of renewed dollar weakness and Fed uncertainty. Japan's Nikkei 225 bucked the regional trend, rising 1.5% as the weaker dollar provided significant support for export-oriented companies.

​Chinese markets showed more restrained performance, remaining sensitive to ongoing trade policy developments and the looming 9 July tariff deadline. Uncertainty about US-China relations continues to weigh on investor sentiment in the region.