Global Markets Plunge as US-Iran Tensions Escalate and Trade Uncertainty Lingers

The global markets started the week on a negative note due to concerns over US growth and inflation data, the Jackson Hole Economic Policy Symposium, and Nvidia's balance sheet.

Investors were already nervous about the ongoing tensions in the Middle East, which have been testing macroeconomics, monetary policy, and the artificial intelligence theme. The lack of clarity on the Fed's policy steps has turned attention to statements made by Chair Kevin Warsh at the Jackson Hole Economic Policy Symposium this Friday.

The US Treasury Secretary is expected to announce new economic sanctions against Iran on Monday, which may further exacerbate tensions in the region and drive up oil prices. The ongoing trade negotiations between the US and Canada have also added to the uncertainty, with Canadian Prime Minister Mark Carney saying that the proposed conditions are 'economically unviable and unfair'.

The sell-off trend has been driven by various factors, including the Fed's potential interest rate hike, Nvidia's balance sheet, and ongoing geopolitical tensions. Analysts expect the 10-year US bond yield to increase due to the Fed's actions, which may put pressure on the dollar. The price of gold has risen as a result of the weakening dollar and curbing rise in bond yields.