Global markets are experiencing heightened volatility driven by escalating trade tensions and geopolitical risks. The key catalyst is the recent announcement by President Donald Trump to increase global tariffs from 10% to 15%, following a U.S. Supreme Court ruling that invalidated previous tariffs under the International Emergency Economic Powers Act (IEEPA). This tariff increase, effective February 24, 2026, has injected uncertainty into trade policy and market sentiment.
Major U.S. stock indices declined significantly on February 23, 2026, with the Dow Jones Industrial Average falling 1.66%, the S&P 500 down 1.04%, and the Nasdaq Composite dropping 1.13%. The technology sector, especially AI-related stocks, and financial shares were notably impacted. Defensive sectors such as Consumer Staples, Healthcare, and Utilities showed relative strength amid the sell-off.
European markets also faced pressure, with indices like the Euro Stoxx 50 and Germany’s DAX down modestly, while Asian markets showed mixed reactions, including a rebound in the Hang Seng Index and gains in the Nikkei following a holiday break.
The U.S. dollar has weakened against major currencies, particularly the Japanese yen, which strengthened following the tariff announcement and Japan's central bank policy stance. The USD/JPY pair is trading within a symmetrical triangle pattern, with technical resistance near 156.00 and support around 152.20. The euro and British pound showed modest rebounds, while the yen's weakness earlier in the week reversed due to political and inflation developments in Japan.
Precious metals have surged as safe-haven demand increased amid trade and geopolitical uncertainties. Gold prices reached a three-week high, trading above $5,200 per ounce, while silver prices exploded from a compression pattern, approaching key resistance levels near $92.20. Copper prices remain firm, reflecting demand for hard assets despite equity market weakness.
Oil prices remain elevated near six-month highs, with Brent crude around $71.49 per barrel and WTI near $66.31. However, oil opened lower on February 24 due to risk aversion and concerns about economic growth, despite ongoing geopolitical tensions between the U.S. and Iran. Upcoming U.S.–Iran nuclear talks in Geneva are closely watched for their potential impact on oil supply and prices.
U.S. Treasury yields have fallen amid risk-off sentiment, with the 10-year yield testing recent lows around 4.03%. High-yield debt faces pressure as spreads widen. The VIX volatility index rose above 21, reflecting increased uncertainty related to tariffs and consumer confidence risks.
Cryptocurrencies have experienced outflows amid the macro-driven risk-off environment. Bitcoin is trading around $63,000, down approximately 2% following a steep monthly decline. Institutional investors are de-risking, with notable whale distributions and leveraged liquidations impacting prices.
Resistance levels at 1.1828 and 1.1847; support at 1.1747 and 1.1727. The euro has rebounded modestly due to dollar weakness but remains sensitive to tariff uncertainties.
Resistance at 1.3539 and 1.3562; support at 1.3430 and 1.3407. Sterling shows resilience but is capped by geopolitical and trade risks.
Resistance at 66.76 and 67.35; support at 64.77 and 64.31. Oil prices are volatile amid geopolitical tensions and economic growth concerns.
Resistance at 5202 and 5268; support at 5098 and 5033. Gold remains elevated on safe-haven demand and inflation concerns.
Resistance at 49,716 and 50,020; support at 49,224 and 48,978. Futures show stabilization but caution persists due to tariff escalation.
Resistance at 25,224 and 25,404; support at 24,641 and 24,464. Tech sector strength is tempered by policy uncertainty and earnings risks.
Resistance at 69,318 and 70,790; support at 66,078 and 64,630. Bitcoin remains pressured by macroeconomic and geopolitical factors.
The global markets are navigating a complex environment shaped by renewed trade tensions, geopolitical risks, and the evolving impact of artificial intelligence on economic sectors. Investors are advised to maintain vigilance, balancing exposure between defensive and growth sectors, and to monitor key economic data and corporate earnings for directional cues. Safe-haven assets like gold and silver are likely to remain in demand, while volatility is expected to persist as markets digest tariff developments and geopolitical negotiations.