Trade wars and bond market disruptions loom over an otherwise buoyant stock market. Fear was the sentiment driving the market Friday, according to CNN’s Fear and Greed Index. The three indices all finished the week in the red as Friday’s selloff erased the week’s previous gains.
Powell: Not Fed’s job to comment on trade policy
Every weekday afternoon, get a snapshot of global markets, along with key company, economic, and world news of the day. However, analysts at Morgan Stanley expect the Fed to cut rates in March, highlighting diverging forecasts on Wall Street. Among the stocks dragging markets lower on Friday were Nvidia (NVDA), which fell 3%, Apple (AAPL), which fell 2.4% and Palantir (PLTR), which fell 1.4%. Rising yields signal concern about a stronger-than-expected economy, resurgent inflation and potentially fewer rate cuts in 2025 than anticipated. Markets in the region were reacting negatively to Trump’s decision over the weekend to slap 25% tariffs on imports from Mexico and Canada and a 10% levy on goods from China. Canada has retaliated with its own sanctions on U.S. imports, and Mexico has threatened to do the same.
Here’s what has investors on edge as stocks cruise near record highs
The fund closed out last week by falling about 3.6% over the period. Markets are worried that President Donald Trump’s tariffs on China, Mexico and China could spill over to Europe and further stoke volatility, according to BMO Wealth Management’s chief https://www.forex-world.net/ investment officer, Yung-Yu Ma. Within the survey, the employment index leaped to 50.3, a gain of 4.9 points, while new orders and production also posted gains. The iShares MSCI Mexico ETF (EWW), which tracks Mexican stocks, rebounded to close more than 2% higher.
Boston Fed President Collins says there’s no hurry to cut rates further
Futures tied to the Dow Jones Industrial Average dropped 483 points, or 1.01%. “A seven-ounce package at Central Market, which currently costs $4.98, would jump to $6.22 if the 25% tariff were fully passed along to consumers like me,” he said. “Some producers and manufacturers may elect to absorb some of the cost of the tariffs, but at 25%, that cost is too big to completely absorb.” The U.S. tariffs on Mexican, Canadian and Chinese goods come about a week before the Super Bowl, perhaps the biggest U.S. sporting event of the year.
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Shares of Japan-listed Mazda Motor Corp traded more than 7.5% lower, while Kia Motor Corp fell nearly 7%. When asked on Sunday about the prospect of tariffs on goods from the U.K. And European Union, Trump told the BBC that both were “out of line” but that the EU was worse. He said a deal could be “worked out” with the U.K., a country with whom the U.S. has a more balanced trade relationship, but stood firm that tariffs on the EU “will definitely happen.” At Monday’s session lows, Canadian Imperial Bank of Commerce tumbled 8%, Bank of Nova Scotia suffered a 7.5% decline, Bank of Montreal dropped 6%, Toronto-Dominion Bank lost 5% and Royal Bank of Canada sank 4.5%. The widely followed investor said fixed income, foreign exchange and equity markets have all gone through sea changes during the past eight years.
- Tyson Foods — The maker of Jimmy Dean sausage rose nearly 4% after fiscal first-quarter results topped expectations.
- “Some producers and manufacturers may elect to absorb some of the cost of the tariffs, but at 25%, that cost is too big to completely absorb.”
- The tone is cautious in the wait for Trump to reveal his plan for universal like-for-like tariffs, promised for announcement midweek.
- Like the Swiss Market Index (SMI), the Dow Jones is a price index.
- The Russell 2000 index, which tracks smaller companies, fell 2.2%, highlighting concerns about the impact of “higher for longer” interest rates.
- That was 1.7 percentage points above the December level and better than the Dow Jones estimate for 50%.
- Japanese auto giants Toyota and Nissan both fell more than 5% on Monday, while domestic rival Honda tumbled 7.2%.
There are no fixed times for reviewing the composition of the index, since changes are only made by the commission as and Direct listing vs ipo when they are needed. The report comes a week after GameStop CEO Ryan Cohen posted a photo to X of him and bitcoin evangelist and Strategy CEO Michael Saylor. “The big question is to what extent is the Fed thinking about immigration and tariff policy that is yet to be implemented,” Mayfield said. At a press conference in December, Fed Chair Jerome Powell was asked by reporters if he could rule out potential rate hikes in 2025.
- Auto stocks fell in the premarket Monday, as traders weighed how the latest U.S. tariffs could hurt the industry.
- “That’s because concessions are an ‘easier’ way to deal with Trump’s ‘problems’ (from a cost-benefit and game-theoretic perspective), and Trump likes to make ‘deals’. Political and market pressure will also weigh on the parties to make concessions, as in 2018.”
- Citigroup in early December said it completed the separation of Banamex from its institutional banking business in Mexico in preparation to list the retail bank, Reuters reported at the time.
- Stocks tied to the price of the cryptocurrency also dropped in the premarket.
- In Europe, shares of French car parts supplier Valeo and automaker Renault fell 8.3% and 4%, respectively, during early morning deals.
- It reversed a trend of 26 straight months in contraction as the best number since September 2022.
Jones said it would take a maestro to introduce big policy changes and preserve the current state in the major asset trade99 review classes. Please bear with us as we address this and restore your personalized lists. By signing up to newsletters, you agree to our Terms of Use and acknowledge the Privacy Policy. CNN and its affiliates may use your email address to provide updates, ads, and offers.
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