Dollar slides to decade-low, US assets hit by loss of confidence

The US dollar slid to its weakest level in ten years, affected by economic instability and uncertainty in policies, prompting a shift towards gold and foreign currencies.

Major indices suffered large losses, with S&P 500 dropping 3.5% and Nasdaq falling 4.3%, as investors fled to perceived safe-haven assets.

Trump’s unexpected pause on tariffs initially caused market relief, but a surge in bond yields and recession fears soon overshadowed this, leading to a negative investor sentiment.