AGS NEWS – Global stock markets declined on Monday as the U.S. dollar surged to its highest level in over two years, fueled by unexpectedly strong U.S. jobs data, Reuters reports.

The dollar index rose 0.23% to 109.91, briefly reaching 110.17, as robust job numbers dampened expectations of further Federal Reserve interest rate cuts. U.S. nonfarm payrolls added 256,000 jobs in December, far exceeding the forecast of 160,000, sparking inflation concerns. U.S. Treasury 10-year yields also climbed to a 14-month high of 4.799% before settling slightly lower.

In U.S. markets, the S&P 500 fell 0.43% to 5,801.96, and the Nasdaq dropped 1.10% to 18,951.26, led by tech sector losses. The Dow Jones gained 0.46% to 42,131.46, driven by industrial stocks.

European and global markets mirrored the trend, with MSCI’s global index dropping 0.62% to 828.72, and the STOXX 600 falling 0.44%.

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Investors are now eyeing U.S. inflation data, with key Consumer Price Index figures expected this week.

Commodities showed mixed results. U.S. crude oil rose 2.42% to $78.42 per barrel, and Brent crude gained 1.6% to $81.04 per barrel, while gold slipped 0.7% to $2,670.86 per ounce due to the stronger dollar.

The dollar’s strength also weighed on currencies, pushing the euro down 0.44% to $1.0199, while the dollar traded at 157.56 yen.

Market analysts linked the volatility to uncertainty over President-elect Donald Trump’s economic policies, including tariffs and tax cuts, alongside rising energy prices and inflation fears.

These factors continue to unsettle investors ahead of further economic data releases.