Dollar Surge and Tariff Uncertainty Shake Markets as Treasury Yields Hit 2004 Highs

Risk sentiment has deteriorated sharply across global markets as the U.S. dollar climbs to near two-month highs amid a deepening bond rout, with 30-year Treasury yields reaching their highest levels since 2004. The combination of firmer Federal Reserve rate expectations and broader economic uncertainty has triggered a flight to safety, pressuring equities and cryptocurrencies while supporting traditional havens.

Proposed tariff increases on major trading partners have intensified macroeconomic concerns, with analysts describing the 2025 outlook as murky despite some bullish equity forecasts. This policy uncertainty has weighed on risk assets, with Bitcoin slipping below $95,000 as investors reassess exposure to volatile markets. Meanwhile, the stronger dollar and elevated bond yields have supported gold prices, as investors seek protection against currency depreciation and inflation concerns.

Energy markets have found support from geopolitical tensions and supply dynamics, with crude prices benefiting from both Middle Eastern risks and elevated shipping costs for major importers. The energy sector's resilience contrasts with weakness in growth-sensitive assets, reflecting the market's focus on stagflation risks and the divergence between traditional commodities and speculative digital assets in the current environment.