Midday Market Roundup for Thursday, March 6, 2025

Here's the revised version with named sources:

Good afternoon, and welcome to our midday global financial and economic update for Wednesday, March 5, 2025. Here are the top four stories shaping markets and economies worldwide:

1.     U.S. Markets Rebound on Potential Tariff Compromise

U.S. stock futures are pointing to gains on Wall Street, with S&P 500 futures up 0.8% in early trading. This comes after a tumultuous Tuesday that saw the S&P 500 drop 1.2%, erasing all of its post-election gains. The potential rebound is fueled by comments from Commerce Secretary Howard Lutnick, who hinted at a possible compromise with Canada and Mexico regarding tariffs. This news has sparked hope that the administration might walk back some of its recently implemented tariffs.

2.     Global Growth Concerns Resurface

Recent weakening U.S. economic data and escalating trade tensions have reignited concerns about global economic growth. The Atlanta Fed's GDP model has dramatically reduced its estimate for annualized growth this quarter from +2.3% to -2.8% in just a week. While a recession is not the prevailing outlook, investors are growing increasingly cautious. Oil prices have dropped to their lowest levels since October, and bond yields are suggesting expectations of potential interest rate cuts.

3.     Cryptocurrency Market Rallies on Strategic Reserve Announcement

The cryptocurrency market is experiencing a significant surge following President Trump's announcement of a U.S. strategic cryptocurrency reserve. Bitcoin jumped 11% to $94,164, while Ethereum rose 13% to $2,516. This move, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, has pushed the global cryptocurrency market capitalization up 4.08% to $2.86 trillion. However, trading volume has declined by 19.73%, indicating some caution among investors.

4.     China Sets Economic Growth Target

According to Associated Press and Bloomberg, China has set its economic growth target at "around 5%" for 2025 during the opening of its ceremonial legislative session. Premier Li Qiang also pledged increased government expenditures and additional initiatives to bolster economic growth. This announcement comes as China grapples with the impact of new U.S. tariffs, to which it has responded with its own set of retaliatory measures. The BBC reports that China also plans to create more than 12 million jobs in cities, setting a target for urban unemployment at around 5.5% for 2025.

As we navigate these complex economic waters, investors should remain vigilant and consider how these developments may impact their portfolios. Stay tuned for further updates as the situation evolves.

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