Good evening, and welcome to The Pulse. Trade tensions, corporate earnings, and geopolitical uncertainty shaped today's trading session, sending mixed signals across markets.
Let's start with the U.S. markets, where stocks took a hit. The Dow Jones Industrial Average dropped 450 points, a 1% decline, while the S&P 500 slipped 0.4% and the Nasdaq Composite lost 0.5%. Inflation concerns, uncertainty around new tariffs, and cautious corporate earnings forecasts largely drove the selloff. (AP News)
One of the most significant developments today was the ripple effect of Walmart's stock tumble. Despite exceeding profit expectations, shares plummeted 6.5% after the company issued a wary forecast for the year ahead. Walmart's concerns about inflationary pressures and potential tariffs resonated across the retail sector, causing a widespread drop in stock prices. This cautionary note from a retail giant like Walmart sent shockwaves, with Target, Amazon, and Costco also closing in the red. (AP News)
Over in the commodities sector, Glencore—one of the world's largest resource traders—reported its lowest profits in four years. Earnings dropped from $17.1 billion to $14.4 billion, weighed down by a sharp decline in coal prices and write-downs in its South African mining and European smelting operations. Glencore announced a $2.2 billion shareholder return through dividends and stock buybacks despite the slump. (The Times)
After President Donald Trump's latest tariff announcement, trade tensions have returned to focus. The administration confirmed a 25% tariff on automobile, semiconductor, and pharmaceutical imports from Canada, Mexico, and China, along with a 10% tariff on Canadian energy imports. The measures, set to take effect March 4, have sparked concerns over potential retaliation from trading partners and how these new policies could impact global supply chains. (Wikipedia)
Meanwhile, geopolitical uncertainty continues to loom. U.S.-Russia negotiations over Ukraine have investors watching energy markets for signs of progress toward a settlement. Defense stocks in Europe have surged amid expectations of higher military spending, as some allies question the U.S.'s long-term commitment to defense aid. This questioning of the U.S.'s commitment could lead to increased defense spending by these allies, boosting the stock prices of defense companies. (MarketWatch)
In the precious metals market, gold surged to an all-time high of $2,954 per ounce, driven by geopolitical risk and inflation fears. Analysts say we could see gold break $3,000 per ounce if uncertainty persists. (The Guardian)
Now, let's delve into the EV industry, where Chinese automakers are reshaping the landscape. BYD, in particular, is outpacing Tesla, selling nearly twice as many electric vehicles in China last month. Their aggressive expansion into Europe, coupled with advanced self-driving features like their new 'God's Eye' AI system, is a testament to their dominance. However, U.S. tariffs on Chinese EVs could pose a barrier to their entry into the American market. (Business Insider)
Turning to economic indicators, the Conference Board's latest report projects U.S. GDP growth of 2.3% for 2025, with more robust expansion expected in the first half of the year. (Conference Board) However, the Federal Reserve is reevaluating its balance sheet strategy in response to mounting trade and geopolitical risks. Atlanta Fed President Raphael Bostic underscored the gravity of the situation, emphasizing the need for 'caution and humility' in policymaking. This signals that rate decisions will be contingent on how global conditions unfold. (Atlanta Fed)
To sum up, today's markets faced pressure from new trade policies, corporate earnings warnings, and geopolitical uncertainty. As tariffs take effect and negotiations play out, investors will need to stay vigilant in the weeks ahead. That's your market update for today. Thanks for tuning in, and stay with us for more insights on global finance.
Disclosure Statement
This presentation is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The content is based on publicly available information as of February 20, 2025, from sources deemed reliable, but the accuracy, completeness, and timeliness of this information cannot be guaranteed. Market conditions are subject to change, and investments carry inherent risks, including the loss of principal. Readers should conduct independent research and consult with licensed financial professionals before making any investment decisions.
This report may contain forward-looking statements based on current expectations and assumptions about market trends, economic indicators, and corporate performance. These statements involve uncertainties and risks that may cause actual results to differ materially. Factors that could influence outcomes include monetary policy, geopolitical events, trade policies, inflationary pressures, and broader macroeconomic conditions.
Neither the author nor any affiliated parties hold positions in any securities mentioned at the time of publication. This report does not constitute an offer to buy or sell any securities or financial instruments. Investors are encouraged to review information from official regulatory sources, such as the U.S. Securities and Exchange Commission (SEC), available at www.sec.gov.
By engaging with this report, you acknowledge and agree that neither the author nor any affiliated entity shall be liable for any direct or indirect losses arising from the use of the information provided.
Sources
AP News: https://apnews.com/article/a3a4b0a796f587961b576bb6a273631b
Wikipedia: https://en.wikipedia.org/wiki/Second_Trump_tariffs
Business Insider: https://www.businessinsider.com/byd-xpeng-china-ev-crushing-tesla-going-global-2025-2
The Conference Board: https://www.conference-board.org/topics/us-leading-indicators/press/us-lei-feb-2025
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
