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:
- 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 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, potentially easing trade tensions and boosting market confidence.
2. Global Growth Concerns Resurface
Recent weakening U.S. economic data and escalating trade tensions have reignited concerns about global economic growth. In just a week, the Atlanta Fed's GDP model dramatically reduced its estimate for annualized growth this quarter from +2.3% to -2.8 %. 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 suggest 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, it's important to note that trading volume has declined by 19.73%, indicating some caution among investors. This caution is a reminder of the potential risks in the cryptocurrency market.
4. China Sets Economic Growth Target
According to the 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 to increase government expenditures and initiatives to bolster economic growth. This announcement comes as China grapples with the impact of new U.S. tariffs, which have put pressure on its export-oriented economy. In response, China has implemented retaliatory measures. The BBC reports that China 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, it's crucial that investors remain vigilant and consider how these developments may impact their portfolios. The current economic climate requires a heightened level of alertness and readiness to adapt to changing market conditions. Stay tuned for further updates as the situation evolves.
Disclosure:
The information provided in this article is for general informational purposes only and does not constitute investment, legal, or financial advice. This content is not intended to be a substitute for professional advice. Always consult with qualified financial, legal, and tax advisors before making any investment decisions.
The views and opinions expressed in this article are based on current market conditions and are subject to change without notice. Any forward-looking statements, including those attributed to third-party sources, are based on assumptions and current expectations which may or may not prove to be correct.
This article may contain references to third-party data and industry publications that have not been independently verified. While we believe these sources to be reliable, we make no representations or warranties as to the accuracy or completeness of such information.
Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results. The strategies discussed may not be suitable for all investors.
This article is not an offer to buy or sell any security.
Sources
https://www.reuters.com/markets/us/global-markets-growth-analysis-2025-03-05/
https://apnews.com/article/china-congress-economy-defense-tariffs-d6192774e13ccb7e28e06d4c3f2173c4
https://www.aljazeera.com/news/2025/3/5/china-sets-5-percent-growth-target-despite-trade-war-with-us
https://www.bbc.com/news/articles/c8x4vj8rj9wo
Recent Articles
Let's talk about your future.
Connect with a local Duncan Williams Asset Management advisor
5350 Poplar Ave.
Suite 600
Memphis, TN 38119
