Stocks end mixed as Dollar slides to multi-year low against Euro

Global stock markets finished mixed on Tuesday as investors awaited a key interest rate decision from the US Federal Reserve and earnings reports from major American technology companies, while the dollar slipped to a four-and-a-half-year low against the euro.

On Wall Street, performance was uneven. Strong gains in heavyweight technology stocks such as Apple and Amazon lifted the S&P 500 to a new record high, while the Dow Jones Industrial Average moved lower. The Nasdaq Composite also closed higher, supported by broader strength in tech shares.

Fresh data showed US consumer confidence dropped to its lowest level since 2014, highlighting ongoing concerns about inflation and the rising cost of living. Even so, markets remain highly confident that the Federal Reserve will leave interest rates unchanged at its policy meeting on Wednesday, following three rate cuts earlier.

Analysts at JPMorgan said the Fed’s decision was widely anticipated, noting that policymakers have indicated a pause is appropriate to assess economic conditions. Traders are currently pricing in the next interest rate cut around June or July.

Technology stocks largely advanced, but US health insurance shares fell sharply after the government announced a smaller-than-expected increase in payments under a major Medicare programme. UnitedHealth Group plunged around 20 percent, making it the biggest decliner on the Dow.

European stock markets mostly closed higher, although Frankfurt’s DAX finished slightly lower. The euro climbed more than one percent against the dollar, breaking above $1.20 for the first time since 2021.

The dollar’s weakness was attributed to speculation about possible coordinated intervention by US and Japanese authorities to support the yen, as well as mounting concerns over a potential US government shutdown. Lawmakers in Washington remain divided over budget negotiations, particularly funding for immigration enforcement following the second killing of a US citizen by federal authorities in Minnesota.

The dollar weakened further after President Donald Trump appeared to welcome the softer currency, saying the greenback was “doing great.”

Earlier in the day, Asian markets advanced as investors largely ignored renewed South Korea–US tariff concerns and focused instead on optimism ahead of earnings from major US technology firms.

In corporate developments, shares of German sportswear company Puma surged in Frankfurt after China’s Anta Sports said it would acquire a major stake in the company. Despite a gain of 9.5 percent, Puma’s share price remained well below the 35 euros per share Anta is paying the Pinault family’s holding company for its 29 percent stake, reflecting investor caution over Puma’s turnaround prospects after its market value fell sharply over the past year.

At around 2130 GMT, the Dow closed down 0.8 percent at 49,003.41, while the S&P 500 rose 0.4 percent to 6,978.60 and the Nasdaq Composite gained 0.9 percent to 23,817.10. In Europe, London’s FTSE 100 climbed 0.6 percent, Paris’s CAC 40 rose 0.3 percent, and Frankfurt’s DAX slipped 0.2 percent.

In Asia, Tokyo’s Nikkei 225 advanced 0.9 percent, Hong Kong’s Hang Seng Index gained 1.4 percent, and Shanghai’s Composite Index edged up 0.2 percent.

In currency markets, the euro rose to $1.2035, the dollar slipped to 152.32 yen, and sterling strengthened to $1.3833. Oil prices also moved higher, with Brent crude up 3.0 percent at $67.57 a barrel and US crude rising 2.9 percent to $62.39 a barrel.