NEW YORK, New York - U.S. President Donald Trump continued to rattle markets on Tuesday with all the major stock indices tumbling. Despite almost universal domestic and global criticism of his administration's launching of a criminal investigation into Fed Chair Jerome Powell, Trump on Tuesday doubled down on his criticism, calling Powell a 'jerk,' falsely claiming the renovations on the Fed building had over run by 'billions,' and labeling the Fed chair as either 'incompetent or crooked.' The unprecedented attack on the Fed's independence has undermined faith in U.S. markets with analysts saying the president's actions will backfire, and will ultimately lead to higher inflation, and thus higher interest rates.

"He's billions of dollars over budget," the president told a press conference at the White House Tuesday. "So, he either is incompetent or he's crooked." 

Later in the day, the president said in a speech at the Detroit Economic Club, in Detroit, Michigan, "That jerk will be gone soon," in reference to Powell.

Separately a 2.7 percent annualised inflation reading was released for December, marginally lower than expected.

"The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent on a seasonally adjusted basis in December, the U.S. Bureau of Labor Statistics said in a statement Tuesday. "Over the last 12 months, the all items index increased 2.7 percent before seasonal adjustment," the report added.

TheDow Jones Industrial Average (^DJI)posted the day's most significant loss among the major U.S. indices. The Dow fell 398.21 points, or 0.80 percent, to finish at 49,191.99.

The benchmark Standard and Poor's 500 (^GSPC) experienced a slight pullback, closing at 6,963.74. The index declined by 13.53 points, a drop of 0.19 percent for the session.

The NASDAQ Composite (^IXIC) demonstrated relative resilience, dipping a marginal 24.03 points. The tech-heavy index closed at 23,709.87, representing a decline of just 0.10 percent.

The session reflected a cautious tone among investors, with losses spread across sectors. The Dow's underperformance suggested particular pressure on industrial and financial shares, while the tech sector, as gauged by the NASDAQ, showed relative stability. Market analysts pointed to a combination of profit-taking after recent gains and anticipation of upcoming corporate earnings reports as factors contributing to the subdued trading day.

U.S. Dollar Gains Broad Ground in Tuesday Forex Trading

The U.S. dollar advanced against a basket of major currencies in Tuesday's foreign exchange market, showcasing broad-based strength particularly against European and commodity-linked units.

The greenback's most notable move was against the Japanese yen, with USD/JPY soaring 0.62 percent to breach a significant level at 159.10. The pair's persistent climb continues to keep traders on alert for potential intervention from Japanese authorities.

The euro softened against the dollar, with EUR/USD declining 0.17 percent to trade at 1.1645. The British pound also lost ground, as GBP/USD fell 0.22 percent to 1.3430.

The Swiss franc weakened noticeably, with the USD/CHF pair rising 0.43 percent to 0.8007, indicating dollar strength.

Commodity currencies faced pronounced selling pressure. The Australian dollar was a notable underperformer, with AUD/USD falling 0.40 percent to 0.6682. The New Zealand dollar fell even more sharply, as NZD/USD dropped 0.55 percent to 0.5739.

The Canadian dollar provided a partial exception to the dollar's dominance. The USD/CAD pair posted a more modest gain of 0.08 percent, last trading at 1.3882.

Market analysts attributed the dollar's firm tone to a combination of relatively resilient U.S. economic data and a cautious market mood that favored the currency's safe-haven appeal. The sustained rise in USD/JPY remained the primary focal point, drawing attention to the widening interest rate differential between the United States and Japan.

The day's movements solidified the dollar's position ahead of key economic data releases later in the week, with traders assessing the potential for continued strength against its major counterparts.

Global Markets Finish with Positive Tone in Tuesday's Trading

Major global stock indices ended Tuesday's session with a mixed but largely positive performance, as traders balanced regional economic signals and corporate earnings reports.

Canada's main benchmark finished slightly in the red. The S&P/TSX Composite index (^GSPTSE) edged down 4.34 points, a negligible decrease of 0.01 percent, ending the day at 32,870.36.

In the UK, the benchmark FTSE 100 (^FTSE) in London closed essentially flat, dipping just 3.35 points to 10,137.35, a marginal decline of 0.03 percent.

In Europe, Germany's DAX (^GDAXI) edged higher, gaining 15.32 points, or 0.06 percent, to close at 25,420.66.

In France the CAC 40 (^FCHI) saw a modest decline, falling 11.56 points, or 0.14 percent, to finish at 8,347.20.

Broader European indices posted gains. The EURO STOXX 50 (^STOXX50E) rose 0.22 percent to 6,029.83, while the Euronext 100 (^N100) added 0.09 percent to 1,781.61.

In Belgium Tuesday, the BEL 20 (^BFX) was a notable outperformer in the region, climbing 36.15 points, or 0.69 percent, to settle at 5,250.09.

Asia-Pacific markets were predominantly stronger.

In Japan Tuesday the Nikkei 225 (^N225) surged dramatically, jumping 1,609.26 points, or 3.10 percent, to close at 53,549.16.

Hong Kong's Hang Seng Index (^HSI) advanced 0.90 percent to 26,848.47.

In Australia the S&P/ASX 200 (^AXJO) gained 0.56 percent to 8,808.50, and the broader All Ordinaries (^AORD) index rose 0.50 percent to 9,138.50.

Singapore's STI Index (^STI) climbed 0.85 percent to 4,807.13. South Korea's KOSPI (^KS11) posted one of the day's strongest gains, rallying 1.47 percent to finish at 4,692.64. Taiwan's TWSE Index (^TWII) added 0.46 percent Tuesday to 30,707.22.

Other Asian markets also finished in positive territory. Indonesia's IDX Composite (^JKSE) rose 0.72 percent to 8,948.30, and Malaysia's FTSE Bursa Malaysia KLCI (^KLSE) increased by 0.75 percent to 1,708.20.

 TuesdayChina's SSE Composite Index (000001.SS) gained 0.44 percent to close at 4,138.76.

The session saw a few key decliners. India's S&P BSE Sensex (^BSESN) bucked the regional trend, falling 0.30 percent to 83,627.69. New Zealand's S&P/NZX 50 (^NZ50) dipped 0.20 percent to 13,656.05. Israel's TA-125 (^TA125.TA) declined 0.33 percent to 3,913.39.

In the Middle East, Egypt's EGX 30 (^CASE30) rose 0.65 percent to 43,684.20,

In Africa, South Africa's Top 40 USD Index (^JN0U.JO) gained 0.58 percent to 7,416.33.

The day's trading on Tuesday highlighted divergent regional performances, with significant strength in Japan and parts of Southeast Asia offsetting more subdued or negative closes in several other major markets.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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