Wall Street: The indices operate disparate a key measure of Donald Trump

Wall Street: The indices operate disparate a key measure of Donald Trump

In this way, the Nasdaq yields 0.07%, while the S&P500 and industrial Dow Jones advance 0.1% and 0.3% respectively.

In February, it is worth remembering, the S&P 500 dropped 1.43%, the Nasdaq yielded 3.97%and the Dow fell 1.6%. The Nasdaq suffered its worst monthly percentage decrease since April and its largest weekly decline since September.

Growing concern for commercial policy and inflation

Investors continue to be surprised by the impact of the Trump administration on the economy. Their tariff threats generated fears about a Inflationary rebound in the USwhich led to the Federal Reserve (FED) to adopt a more cautious approach in its monetary policy.

In this context, the Secretary of Commerce, Howard Lutnick, said Sunday that 25% tariffs to Canada and Mexico, scheduled for this Tuesday, They could be reduced. However, the 10% rate imposed on China will remain in force while Beijing prepares its answer.

Donald Trump Wall Street.jpg

The Trump tariff policy raises the possibility of raising inflation in the US

International reactions and geopolitical risks

Globally, Friday’s tensions in Washington caused a rapid response from Europe. United Kingdom and France lead an initiative to present a peace plan to the US with the aim of mediating in the conflict between Ukraine and Russia.

On the other hand, The turn in Trump’s position regarding war in Ukraine generated uncertainty in the markets. His recent kyiv distancing and the deterioration of relations with their traditional allies have baffled investors.

According to Link Securities, although the US economy remains solid, the latest data on business activity and consumer trust have led several analysts to rethink their forecasts.

“The erratic communication of the government, especially in tariff matters, is already affecting investment and consumption decisions, which could decelerate economic growth,” they explain from the firm.

The risk of possible stagflation – a combination of low growth and persistent inflation – COmienza to gain space in the debate, a scenario that already affects several European economies.

This Monday, the PMI and ISM indices of the February manufacturing sector will be published, while on Wednesday the data of the services sector and the Beige Book of the Fed will be known.

In the labor front, the ADP report on Wednesday, unemployment applications on Thursday and the official employment report on Friday are expected. In the corporate field, the Balances season in the US enters its final stage. Companies such as Target, Best Buy, Macy’s, Kroger, Costco and GAP will present their results, with special attention in their projections on consumer demand.

How other markets operate

Brent oil progresses 0.3% and quotes at US $ 73.02, while the euro rises 0.37% Au $ S1,0414. For its part, gold earns 0.9% and reaches US $ 2,873 per ounce.

In the bond market, the 10 -year American treasure performance falls to 4,229%. Meanwhile, Bitcoin goes back 1.3% to US $ 92,798, despite the strong recovery of the weekend after Trump’s statements about the creation of a strategic reserve of cryptocurrencies in the US.

Source: Ambito

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