The US stock exchanges experienced a decline on Tuesday. At the close in New York, the Dow Jones Industrial Average was calculated at 49,149 points, marking a drop of 0.6 percent compared to the previous trading day. Shortly before that, the broader S&P 500 was down 0.6 percent at around 7,064 points, and the technology exchange, Nasdaq, recorded the Nasdaq 100 at approximately 26,479 points, down 0.4 percent.
The markets seemed uncertain on Tuesday due to reports that peace talks with Iran had been paused by the US government. Additionally, investors were following a hearing regarding the confirmation of Kevin Warsh as chairman of the US central bank, the Federal Reserve. During the hearing, Warsh stated that he is “by no means” a puppet of US President Donald Trump, countering accusations made by Democratic Senator Elizabeth Warren. He emphasized that the central bank’s independence is “essential”.
Despite Warsh’s commitment to the Fed’s autonomy, the decision of Republican Senator Thom Tillis remains crucial. Tillis intends to withhold his support for Warsh’s appointment as Fed chairman until the US Department of Justice investigation into the current Fed head concludes, as he believes this investigation compromised the Fed’s independence.
Meanwhile, the European common currency weakened on Tuesday evening; one Euro cost $1.1748, meaning a dollar was priced at 0.8512 Euros. Gold prices fell sharply, with a fine ounce trading at $4,703 in the evening (-2.4 percent), equivalent to €128.71 per gram. Conversely, oil prices rose significantly: a barrel of North Sea Brent crude cost $100.70 at around 10 PM German time on Tuesday, an increase of 5.4 percent from the closing price of the previous day.