The US dollar surged to a six-month high, and Treasury yields climbed sharply as markets reacted to fears of inflation under a second Trump presidency. Concerns stem from potential tariffs, aggressive foreign policies, and pro-growth initiatives like tax cuts that could overheat the economy. Investors now believe the Federal Reserve is less likely to cut interest rates in December, with the chances dropping to 62% from 81% last week. European stocks fell as Trump’s proposed tariffs could squeeze both European and Chinese economies, while commodities like copper dropped nearly 2%, reflecting broader global economic unease.