U.S. stocks fell sharply and gold reached an all-time high as interest rates rose and trade rules became less clear. At the same time, inflation in the Eurozone increased slightly and the Nikkei rose because the yen lost some value.

• U.S. markets opened the short week with a lot of stocks being sold, led by a sharp decline in tech stocks, as rising bond yields and policy uncertainty worried investors. The Nasdaq was not doing well, and the VIX volatility index went up, showing that investors were worried. A U.S. appeals court has said that some of the Trump administration’s tariffs might not be legal. This has made things more uncertain, even though the tariffs are still in place while we wait for the Supreme Court to make a decision. In this situation, the price of gold reached a new record high of over $3,500 an ounce, as investors bought gold to protect their money. Markets are now looking to a series of important economic reports this week, with a particular focus on Friday’s Non-Farm Payrolls report.

• In Europe, stocks also fell, including the DAX, as long-term government bond yields hit their highest levels in years. This was made worse by a quick estimate that showed Eurozone inflation might go up to 2.1% in August. This small increase might make it less likely that the European Central Bank will cut interest rates soon.

• In contrast to the U.S. and Europe, Japan’s Nikkei index closed slightly higher, helped by a weaker yen. The weaker currency, trading at around 148-148.5 against the dollar, is helping Japan’s exporters and has helped the index perform better than other major markets, despite global pressure on returns.