US Stocks Tumble on Inflation Concerns and Trade Disruptions
Stocks in the US closed sharply lower on Friday, weighed down by rising inflation concerns and growing trade policy uncertainty. The S&P 500 slid 2%, the Dow Jones sank 715 points, and the Nasdaq 100 tumbled 2.7%. Tech giants led the decline, with Alphabet, Amazon and Meta dropping over 4% each, and Microsoft fell 3%. Inflation worries intensified after the University of Michigan’s final consumer sentiment reading for March showed the highest long-term inflation expectations since 1993. Meanwhile, the core PCE price index, the Fed’s preferred inflation measure, rose 2.8% in February, surpassing forecasts, while consumer spending grew 0.4%. Investors braced for further trade disruptions as Trump’s 25% auto tariff takes effect next week, sparking concerns of retaliatory measures from key trading partners. The S&P 500 and Nasdaq lost over 1% and 2% respectively, booking their fifth weekly drop in six weeks, while the Dow declined 0.8%.
TSX Retreats Amid Trade Tensions and Economic Headwinds
The S&P/TSX Composite Index dropped 1.6% to close at 24,759 on Friday, wiping out weekly gains to register an overall 0.8% decline, as investors remained cautious amid looming US tariffs, tepid GDP growth, and inflation worries. President Trump’s recent announcement of a 25% tariff on foreign-made cars has exacerbated fears over escalating trade tensions, compounding with Prime Minister Carney’s stark warning of potential retaliatory measures. Meanwhile, preliminary data indicating that Canadian GDP stagnated in February has intensified apprehensions about a broader economic slowdown. On the U.S. front, long-term inflation expectations soared to their highest level since 1993, while the core PCE rose by 2.8% in February—pressuring the Federal Reserve to sustain higher borrowing costs. Eight out of nine major industries traded in the red, with Shopify leading the decline with a 5.7% drop, while Brookfield and Canadian Pacific Railway fell by 4.2% and 3.1%, respectively.
Meta Hits 17-week Low
Meta decreased to a 17-week low of 574.65 USD. Over the past 4 weeks, Meta Platforms, Inc. lost 12.11%, and in the last 12 months, it increased 17.11%.
Crude Oil Eases, But Posts 3rd Weekly Gain
WTI crude oil futures dropped 0.8% to settle at $69.4 per barrel on Friday, due to concerns that the ongoing trade tensions, particularly between the U.S. and key trading partners, could spark a global recession. Despite this, oil prices recorded their third consecutive weekly gain, supported by U.S. sanctions on Venezuela and Iran. The U.S. crude inventory data revealed a 3.3 million barrel decline, signaling continued strong demand. President Trump's tariffs on Venezuelan oil are expected to worsen the nation’s production decline, while sanctions on Iran and the pressure on Venezuela are tightening global supply. The market is closely monitoring these geopolitical risks and their impact on oil prices.
Crypto currencies decreasing on Friday
Bitcoin and Ether are experiencing declines. Ether has slipped 6.45%. Bitcoin is down 3.93%.
Agricultural Commodities Updates: Orange Juice Tumbles by 5.11%
Top commodity losers are Orange Juice (-5.11%), Oat (-1.57%) and Rubber (-1.55%). Gains are led by Palm Oil (2.83%), Canola (1.68%) and Cocoa (0.99%).
Metals Commodities Updates: Silver Drops by 1.16%
Top commodity losers are Silver (-1.16%) and Platinum (-0.98%). Gains are led by Gold (0.79%).
Energy Commodities Updates: Natural gas Gains by 3.55%
Top commodity gainers are Natural gas (3.55%). Biggest losers are Heating Oil (-0.83%), Crude Oil WTI (-0.82%), Natural Gas EU Dutch TTF (-0.79%) and Brent Crude Oil (-0.54%).
Brazil Economy Adds More Jobs than Expected
The Brazilian economy added 431,995 formal jobs in February of 2025, way above market expectations of 250 thousand. The services sector led February's growth with 254,812 jobs, followed by industry (+69,884), commerce (+46,587) and construction (+40,871), while agriculture posted gains of (+19,842). São Paulo contributed the most, adding 137,581 jobs, with services accounting for the bulk. The average real salary for new hires was R$2,205.25, a decrease of R$79.41 (-3.48%) from January. Over the past 12 months, Brazil generated 1,782,761 jobs.
Salesforce Hits 25-week Low
Salesforce decreased to a 25-week low of 269.67 USD. Over the past 4 weeks, Salesforce Inc lost 7.74%, and in the last 12 months, it decreased 10.69%.
Analog Devices Hits 6-week Low
Analog Devices decreased to a 6-week low of 201.19 USD. Over the past 4 weeks, Analog Devices lost 12.36%, and in the last 12 months, it increased 1.88%.
Wall Street Sinks on Inflation and Trade Worries
US stocks extended their sell-off in afternoon trading, pressured by mounting inflation concerns and escalating trade policy uncertainty. The S&P 500 slid 1.8%, the Dow Jones sank 700 points, and the Nasdaq 100 tumbled 2.7%. Tech giants led the decline, with Alphabet and Amazon dropping over 4%, and Microsoft and Meta falling 3.5%. Inflation worries intensified after the University of Michigan’s final consumer sentiment reading for March showed the highest long-term inflation expectations since 1993. Meanwhile, the core PCE price index, the Fed’s preferred inflation measure, rose 2.8% in February, surpassing forecasts, while consumer spending grew 0.4%. Investors braced for further trade disruptions as Trump’s 25% auto tariff takes effect next week, sparking concerns of retaliatory measures from key trading partners.. The S&P 500 and Nasdaq, down over 1% and 2% respectively, are on track for their fifth weekly drop in six weeks, while the Dow is set to decline 0.8%.
European Stocks End Week Lower
European stock markets declined on Friday, with the Stoxx 50 dropping 1.1% and the Stoxx 600 falling 0.8%, marking its third consecutive negative close. Investors reacted to U.S. economic data, particularly the core personal consumption expenditures (PCE) price index, which rose unexpectedly to 2.8%, signaling persistent inflation. This put pressure on European markets, which had already been weighed down by U.S. President Donald Trump’s announcement of a 25% tariff on foreign-made cars, set to take effect on April 2. Trump also threatened further tariffs on the EU and Canada, escalating trade tensions. Meanwhile, inflation data from Spain and France showed softer-than-expected results, with France’s inflation holding steady at 0.9% and Spain’s dropping to 2.2%. In corporate news, shares of Ubisoft went down almost 2% after Chinese tech giant Tencent announced a $1.25 billion investment in a subsidiary focused on Ubisoft’s gaming franchises.
FTSE MIB Slides as Trade Concerns, Weak Consumer Confidence Weigh
The FTSE MIB declined 0.9% to close at 38,748 on Friday, reversing gains from the previous session as cautious sentiment persisted across European markets. Investors remained on edge ahead of additional U.S. tariffs set to take effect next week, amplifying concerns over escalating trade tensions and their impact on the global economy. On the domestic front, Italian consumer confidence fell to its lowest level since November 2023, while business sentiment also weakened slightly, adding to the cautious mood. Financial stocks led the downturn, with Bper Banca (-2.6%), UniCredit (-2.5%), Intesa Sanpaolo (-1.9%), Banco BPM (-2%), and FinecoBank (-2.1%) posting significant losses. For the week, the FTSE MIB declined 1.2%, reflecting broader uncertainty in the market.
DAX Slumps for Third Day as US Tariff Concerns Deepen
Frankfurt’s DAX dropped nearly 1% to close at 22,455 on Friday, marking its third straight session of declines and underperforming its European peers. Market sentiment remained fragile amid growing concerns over U.S. tariffs and escalating trade tensions that could hinder global economic growth. A new wave of retaliatory tariffs on U.S. imports, including a 25% levy on automobiles, is set to take effect on April 2nd, while investors brace for potential U.S. duties targeting the pharmaceutical and tech sectors. Banking and energy stocks led the declines, with Commerzbank plunging 5.2%, Siemens Energy sliding 5%, Infineon Technologies falling 3.8%, and Siemens dropping 2.3%. The auto sector also extended losses from Thursday, as Mercedes-Benz Group slipped 1.5%, while Porsche AG, Volkswagen, and BMW lost 1.8%, 2.4%, and 1.5%, respectively. For the week, the DAX shed 2.7%, reflecting broader market unease over geopolitical and economic uncertainties.
Week Ahead - March 31st
Next week, investors will closely monitor developments in the trade war, as reciprocal tariffs on imports to the US are set to take effect on April 2nd, including a 25% levy on autos. The US jobs report will also capture attention, alongside the ISM PMIs, which will provide insights into the labour market and private sector performance. Additionally, the official and Caixin PMIs for China, Japan's Tankan business survey, preliminary inflation figures for the Eurozone, and Germany's factory orders will be in focus. The PMIs for Europe's largest economies will also be closely watched. Meanwhile, the Reserve Bank of Australia is expected to keep interest rates unchanged.
Gold Keeps Smashing Records
Gold prices soared above $3,080 per ounce on Friday, hitting a record high as investors sought safety amid fears of a global trade war sparked by US President Trump’s new tariffs. Gold has risen nearly 2% this week, marking its fourth consecutive weekly gain, due to concerns over tariffs, trade disputes, and geopolitical risks. Also, February’s PCE price index rose 0.4%, above expectations. While the Fed has held rates steady after three cuts in 2024, markets anticipate 63 bps in cuts by year-end. Trump’s upcoming reciprocal tariff plans on April 2 add to inflation worries and trade tensions.
Applied Materials Hits 15-month Low
Applied Materials decreased to a 15-month low of 145.35 USD. Over the past 4 weeks, Applied Materials lost 4.3%, and in the last 12 months, it decreased 30.3%.
Dollar Slips Amid Growing Economic Concerns
The dollar index fell about 0.4% on Friday, slipping below 104 after reaching three-week highs earlier in the week, as concerns over the US economic outlook intensified. A new round of reciprocal tariffs, including a 25% levy on auto imports, is set to take effect on April 2nd, raising fears about the economic impact of the Trump administration’s trade policies amid signs of weakening growth. Meanwhile, core PCE inflation accelerated in February, exceeding forecasts, while personal spending rose less than expected. Additionally, the Michigan consumer sentiment index was revised lower, CB consumer confidence dropped to a four-year low, and core durable goods orders unexpectedly contracted. For the week, the dollar was little changed but remains down roughly 3% for the month.
Canada Government Budget Gap Widens in January
Canada's government budget recorded a deficit of CAD 5.13 billion in January 2025, widening from a CAD 2.06 billion deficit in January 2024. During the first ten months of the 2024/25 fiscal year (April–January), the country posted a deficit of CAD 26.85 billion, up from the CAD 25.67 billion deficit reported in the same period a year earlier. Program expenses rose by 10.9%, reflecting increases across various categories. Public debt charges increased by 16.2%, primarily due to a rise in the stock of marketable bonds. Meanwhile, government revenues climbed by 10.9%, largely driven by higher personal income tax revenue and other taxes and duties.
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