Currency traders were seen monitoring screens displaying key indicators such as the Korea Composite Stock Price Index and the exchange rate between the U.S. dollar and the South Korean won at a bank’s foreign exchange dealing room in Seoul. The scene underscores the heightened attention on market signals as global investors react to volatile developments.

In Bangkok, Asian shares closed mixed on Monday following a significant fall in U.S. stock markets, which raised apprehensions about economic health as consumers and businesses grappled with uncertainty stemming from proposed policy shifts by President Donald Trump. Notably, some major markets like Tokyo were closed for a holiday, while others such as Hong Kong, Shanghai, Australia, South Korea, Taiwan, and India experienced slight gains or losses in their respective indices.

Reports from leading economic groups, including S&P Global, indicated that U.S. business activity was on the brink of stalling. Multiple surveys detailed a slowdown in service sector activity and a pervasive pessimism among companies regarding federal government policies, which included concerns over spending cuts, tariffs, and geopolitical developments. This uncertainty, coupled with rising costs from tariff-related price hikes, has begun to impact sales and overall economic confidence.

Another economic report pointed out that U.S. consumers were preparing for higher inflation, with many expecting a significant rise in prices over the next year compared to previous forecasts. In tandem with these insights, data on the housing market showed that sales of pre-owned homes had declined, influenced in part by high mortgage rates and the persistent high prices of homes.

The market had experienced a turbulent period following a steep drop in major U.S. indices like the S&P 500, Dow Jones Industrial Average, and Nasdaq composite after several weaker-than-expected economic reports. Attention was particularly drawn to smaller companies whose performance is closely linked to the broader economy, as well as to specific stock movements, including a sharp decline in a notable cybersecurity and cloud computing firm, which saw its value plummet despite strong quarterly profits.

Amid these fluctuations, the U.S. Federal Reserve had maintained its main interest rate after a period of significant cuts, with officials hinting at a sustained hold on rates in light of various domestic challenges. This monetary stance has been a double-edged sword, potentially stimulating economic activity while also fanning the flames of inflation. Meanwhile, fluctuations in energy prices and currency exchange rates underscored the volatile atmosphere in both the commodity and financial markets.