Trump Expands Exemption: Canada Now on List
Former US President Donald Trump had previously only spoken about special conditions for Mexico, but later amended his order to extend the exemption to Canada.
Stock Market Down: Energy Is the Only Growth
US stock indices are declining: of the 11 sectors of the S&P 500, almost all went into the red, including real estate and technology. The only sector to show positive dynamics was energy.
Nasdaq in correction zone: alarming signs for investors
The Nasdaq index has lost 10.4% since the close of trading on December 16, officially entering the correction phase. The S&P 500 briefly fell below the 200-day moving average, a key technical support level. If the index breaks through this level seriously and for a long time, this could mean further decline in the stock market.
Wall Street Fear Index at Highest Since December
The CBOE Volatility Index (VIX), which tracks market fluctuations and is often called Wall Street's "fear index," rose 2.94 points to 24.87, its highest since Dec. 18.
Major Indexes Fall: Dow Jones Loses 427 Points
Amid Market Turmoil:
- The Dow Jones fell 427.51 points (-0.99%) to close at 42,579.08;
- The S&P 500 lost 104.11 points (-1.78%) to close at 5,738.52;
- The Nasdaq Composite fell 483.48 points (-2.61%) to close at 18,069.26.
Automakers Lose Ground: Tesla at Risk
Auto giants ended the day in the red. General Motors lost 2.6%, Ford – 0.4%.
Tesla was hit particularly hard: the company's shares fell by 5.6% after Baird analysts called the electric car maker "the new bearish pick" in the market.
Financial Markets Remain Under Pressure
Volatility, corrective movements and bearish analyst forecasts create an unstable environment on Wall Street. Investors are anxiously watching for further signals that could affect the market in the coming weeks.
Marvell Collapse: Chip Market Under Pressure
Marvell Technology (MRVL.O) shares fell by almost 20% after publishing financial results that disappointed investors. The wave of negativity also swept over other major semiconductor players, with Broadcom (AVGO.O) and Nvidia (NVDA.O) also falling, helping the broader semiconductor index (.SOX) to fall 4.5%.
Kroger on the rise: the retailer beat expectations
Despite the general pessimism in the stock market, Kroger (KR.N) showed a 2% gain. Investor confidence was bolstered by the company's full-year sales forecast at existing stores, which significantly exceeded analysts' expectations.
US labor market: new unemployment data
Economic data continues to surprise. The number of new jobless claims in the US fell more than analysts had expected last week. This fact increased interest in a more detailed report on the labor market, which will be released on Friday. Investors expect that it may influence the Federal Reserve's next steps.
Fed may cut rates: Investors bet on June
Traders now see the Federal Reserve's first interest rate cut in June, by 25 basis points, according to LSEG. The shift in expectations is driven by the latest economic data and inflation risk assessments.
Philadelphia Fed President Warns of Risks
Patrick Harker, president of the Philadelphia Federal Reserve, expressed cautious optimism about the current state of the economy. However, he also warned that the consumer sector is showing signs of strain, which could create further inflation risks.
Markets on edge: Investors nervous about US policy
Friday's trading followed a tense week, with markets rocked by uncertainty over US trade policy and rising global borrowing costs. These factors sent stocks and risky currencies lower, although the massive sell-off in bonds eased towards the end of the week.
Focus on Employment Report, Powell's Speech
The financial world is in suspense. Later in the day, the US non-farm payrolls report will be released, which could set the tone for future monetary policy.
Investors are also focused on a speech by Fed Chairman Jerome Powell, who is hoping to shed some light on the outlook for interest rates in the world's largest economy.
Nasdaq Officially in Correction: Wall Street Under Pressure
The Nasdaq (.IXIC) stock index has finally confirmed its entry into a correction phase that began with December highs. Pressure on the market has increased amid weak forecasts for US economic growth and uncertainty surrounding former President Donald Trump's trade policy.
US Futures Show Signs of Recovery
After a sharp decline the day before, US stock futures partially recouped their losses on Friday:
- Nasdaq futures added 0.24%;
- S&P 500 futures rose 0.11%.
However, the situation on global markets remained less optimistic.
Europe and Asia in the red: investors are moving away from risk
Unlike the US, European stock indices continued to decline:
- EUROSTOXX 50 fell by 0.94%;
- British FTSE fell by 0.5%.
Asian markets also suffered losses. Japanese Nikkei (.N225) hit a six-month low, and the largest stock index of the Asia-Pacific region MSCI (.MIAPJ0000PUS) lost 0.75%.
Trump Changes Tariff Policy Again: Markets React
On Thursday, it became known that Donald Trump canceled the 25% tariffs on most goods from Canada and Mexico that he himself imposed earlier in the week. This unexpected reversal in trade policy caused additional turbulence in the markets, increasing uncertainty among investors.
Risky Currencies Fall, Safe Havens Strengthen
Amid the instability, investors began to get rid of risky currencies.
- The Australian dollar fell by 0.5%, reaching $0.62995;
- The Japanese yen rose by more than 0.3%, reaching 147.47 per dollar;
The Swiss franc rose to a three-month high at 0.88125 per dollar.
Gold is back on top: All-time high is near
Amid market instability, gold has once again become a "safe haven" for investors. The precious metal remains near record highs, settling at $2,913.63 per ounce.
Markets on the brink: what's next?
Amid unpredictable trade policy decisions, currency market volatility, and monetary policy uncertainty, investors continue to look for signals of further movement. The focus remains on the Federal Reserve, inflation expectations, and global economic dynamics.
Chinese markets fall: pressure on the economy grows
China's stock market ended the trading session in the red, reflecting the weakness seen in other Asian markets. The blue-chip CSI300 Index (.CSI300) fell 0.53%, while the Shanghai Composite (.SSEC) lost 0.46%, continuing its weakening trend.
China's unexpected import drop: a wake-up call
Fresh macroeconomic data showed that China's imports unexpectedly fell in the first two months of the year. Exports also slowed, indicating weakening external demand. Increasing tariff pressure from the US adds further risks to the recovery of the world's second-largest economy.
Hang Seng first soars, then plummets
Hong Kong's Hang Seng (.HSI) stock index hit a three-year high during trading, but investors later took profits and the market turned lower. As a result, the index lost 0.7% by the close. However, the excitement around artificial intelligence continues to keep market participants interested.
European bond markets: sell-off slows
European bond markets, which had previously seen a sharp decline, are showing signs of stabilization. The recent sell-off was caused by Germany's ambitious plans to increase government spending. On Friday, the situation leveled off somewhat:
- Government bond futures rose more than 0.8%;
- French OATs also rose 0.7%.
Yields on bonds traditionally move in the opposite direction to their prices.
Japan: Bond yields at highs
Japan's debt market continues to feel pressure from investors, although the pace of sell-off has slowed compared to the previous session.
- The yield on 10-year Japanese government bonds (JGBs) rose 1.5 basis points to 1.53%, the highest since June 2009;
- The 20-year bond rose 2 basis points to a 16-year high of 2.22%.
The rise in yields points to tensions in the Japanese financial system, and analysts are closely monitoring the situation.
Global markets seek balance
Investors remain cautious amid macroeconomic uncertainty. China faces weakening trade, Europe continues to react to new German budget initiatives, and Japanese bonds are hitting multi-year yield highs. All of this creates a complex and tense backdrop for global financial markets.
Euro on the rise: biggest weekly gain in 15 years
Amid a sharp rise in borrowing costs in Europe, the single currency continued to strengthen. The euro is on track for its biggest weekly gain since 2009, up 4.3%. The currency was last trading 0.35% higher at $1.0823.
ECB cuts rates, but warns of global risks
The European Central Bank (ECB) decided on another interest rate cut on Thursday, but this did not signal further policy easing. The regulator stressed that the economic situation remains extremely unstable.
The main threats:
- The escalation of trade wars, especially from the US, which may require further rate cuts;
- The growth of defense spending, which may increase inflationary pressure.
If these factors intensify, the ECB may pause its easing cycle next month.
Economists: The ECB is balancing between two extremes
According to Mark Wall, Chief Economist for Europe at Deutsche Bank, the central bank is in a difficult situation.
"On the one hand, the possible introduction of new US tariffs may require an aggressive rate cut and more active stimulus. On the other hand, the growing pressure in the form of increased military spending may lead to an acceleration of inflation, which will force the ECB to act more cautiously," the expert noted.
This means that Europe's monetary policy requires a flexible approach and maintaining room for maneuver.
Oil Markets: Brent and WTI Continue to Grow
Oil prices showed a slight increase in the commodity markets.
- Brent futures added 0.1%, reaching $69.53 per barrel;
- American WTI rose by 0.03%, settling at $66.38 per barrel.
The rise in prices is due to continued demand for energy, as well as the influence of geopolitical factors on oil production and supplies.
Global economic uncertainty remains
The strengthening of the euro, ECB policy, concerns about trade wars and inflation risks create a complex picture for the global economy. At the same time, the energy market remains stable, which gives stability to some sectors.
Investors continue to closely monitor the decisions of the largest central banks, analyzing possible scenarios for the development of the global economy.
