Escalating Global Trade Tensions Weigh on Stocks | U.S. Markets

The S&P 500 Index ($SPX) (SPY) in the present day is down -0.87%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -1.01%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.60%.  March E-mini S&P futures (ESH25) are down -1.22%, and March E-mini Nasdaq futures (NQH25) are down -0.91%. 

Inventory indexes in the present day prolonged Monday’s losses, with the S&P 500 and Dow Jones Industrials falling to 7-week lows and the Nasdaq 100 dropping to a 3-3/4 month low.  Worries about escalating international trade tensions are weighing on equity markets in the present day.  US tariffs kicked in in the present day on Canadian and Mexican items and expanded tariffs in opposition to China. 

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Canada in the present day introduced a bundle of counter-tariffs in opposition to US-made merchandise in response to the US tariffs efficient instantly and consists of 25% tariffs on about C$30 billion ($20.6 billion) value of items offered by US exporters, with a second spherical of tariffs on C$125 billion of US exports in three weeks, together with big-ticket gadgets like vehicles, metal and aluminum. Canada is the biggest single purchaser of US items, and vice versa.

China in the present day introduced tariffs as high as 15% on US agricultural items efficient March 10 and banned trade with some protection corporations in retaliation for US tariffs.

Market consideration will give attention to President Trump’s tackle to a joint session of Congress Tuesday night.  On Wednesday, the Feb ISM companies index is predicted to fall -0.1 level to 52.7.  On Friday, Feb nonfarm payrolls are anticipated to rise by +160,000, and the Feb unemployment fee is predicted to stay unchanged at 4.0%.  In the meantime, Feb average hourly earnings are anticipated to stay unchanged from Jan at +4.1% y/y.  Additionally, on Friday, Fed Chair Powell will give the keynote speech on the financial outlook at Chicago Sales space’s 2025 US Financial Coverage Discussion board. 

The markets are discounting the probabilities at 12% for a -25 bp fee cut on the subsequent FOMC assembly on March 18-19.

Abroad stock markets in the present day are combined.  The Euro Stoxx 50 dropped to a 2-1/2 week low and is down -2.31%.  China’s Shanghai Composite Index recovered from a 3-week low and closed up +0.22%.  Japan’s Nikkei Inventory 225 fell to a 5-1/2 month low and closed down -1.20%.

Curiosity Charges

June 10-year T-notes (ZNM25) in the present day are up +8 ticks.  The ten-year T-note yield is down -1.7 bp to 4.138%.  June T-notes in the present day climbed to a 4-1/2 month high, and the 10-year T-note yield fell to a 4-1/2 month low of 4.114%.  T-notes in the present day prolonged Monday’s features on carryover help from Monday’s weaker-than-expected US ISM and construction spending stories.  Additionally, in the present day’s US tariffs on Canada, China and Mexico fueled issues about slowing international growth, a supportive issue for T-notes. As well as, T-notes have additionally elevated safe-haven demand because of weak point in equity markets. 

European bond yields in the present day are transferring decrease.  The ten-year German bund yield is down -0.6 bp to 2.485%.  The ten-year UK gilt yield is down -5.0 bp to 4.504%.

The Eurozone Jan unemployment fee was unchanged at a file low of 6.2%, displaying a stronger labor market than expectations of 6.3%.

Swaps are discounting the probabilities at 99% for a -25 bp fee cut by the ECB on the March 6 coverage assembly.

US Inventory Movers

The weak point within the Magnificent Seven Expertise shares is weighing on the general market.  Meta Platforms (META) is down more than -3%, and Amazon.com (AMZN) is down more than -2%.  Additionally, Nvidia (NVDA) is down -0.8%, and Microsoft (MSFT) is down -0.5%.

Tesla (TSLA) is down more than -4% after reporting its China Feb vehicle deliveries sank -49% y/y to 30,688 models. 

Financial institution shares are below stress in the present day.  Citigroup (C) and KeyCorp (KEY) are down more than -6%.  Additionally, Wells Fargo (WFC) and Financial institution of America (BAC) are down more than -5%, and Goldman Sachs (GS) and Uncover Monetary Providers (DFS) are down more than -4%.  As well as, American Specific (AXP), Fifth Third Bancorp (FITB), Northern Belief (NTRS), and JPMorgan Chase (JPM) are down more than -3%. 

Power producers and vitality service suppliers are transferring decrease, with the price of WTI crude oil down more than -1% to a 2-3/4 month low.  APA Corp (APA), Halliburton (HAL), and Schlumberger (SLB) are down more than -3%.  Additionally, Baker Hughes (BKR), ConocoPhillips (COP), Marathon Petroleum (MPC), and Diamondback Power (FANG) are down more than -2%.

Greatest Purchase (BBY) is down more than -13% to guide losers within the S&P 500 after forecasting full-year adjusted EPS of $6.20 to $6.60, with the midpoint beneath the consensus of $6.55. 

Illumina (ILMN) is down more than -2% after China banned the company from promoting genetic sequencing merchandise in China as half of a wave of retaliatory measures in opposition to recent US tariffs on Chinese language items. 

Okta (OKTA) is up more than +18% after reporting This autumn income of $682 million, higher than the consensus of $669.8 million, and forecast 2026 income of $2.85 billion-$2.86 billion, stronger than the consensus of $2.80 billion. 

Walgreens Boots Alliance (WBA) is up more than +6% to guide gainers within the S&P 500 after Bloomberg reported that Sycamore Companions is nearing an acquisition of the company. 

ON Holding (ONON) is up more than +4% after reporting a This autumn gross margin of 62.1%, higher than the consensus of 61.7%. 

Labcorp Holdings (LH) is up more than +1% after Citigroup upgraded the stock to buy from impartial with a price goal of $300. 

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