• The EUR/USD pair gains 0.8%, while the U.S. dollar loses over 0.5%. Markets are increasing bets on Fed policy easing, pricing in a more than 50% chance of a rate cut in May. Gold rises nearly 0.6%, climbing back above $2,900 per ounce.
• Declines dominate the technology sector today, with Tesla falling nearly 5% after reporting a more than 49% year-over-year drop in vehicle sales in China. However, semiconductors see a rebound, with Nvidia recovering from an almost 3.5% drop to trade nearly 1.5% higher. Most semiconductor stocks are rising, slightly improving the still weak sentiment on the Nasdaq.
• The financial sector is also under broad pressure, with shares of Goldman Sachs and Morgan Stanley losing around 5%, while Bank of America and Citigroup decline nearly 6%.
• Donald Trump has announced a significant speech before a joint session of the U.S. Congress at 2 AM GMT. He is expected to address U.S. economic policies, including deregulation and tax cuts, as well as global stability issues.
• Ukrainian President Volodymyr Zelensky has declared readiness to return to negotiations with the U.S., expressing a willingness to pursue a peaceful resolution to the war with Russia and sign an agreement regarding the extraction of Ukrainian natural resources. He stated that he regrets what happened in the Oval Office and emphasized that an immediate cessation of hostilities—especially Russian airspace operations—and the release of prisoners are necessary steps toward peace.
• Canadian Prime Minister Justin Trudeau announced retaliatory sanctions against the U.S., but Donald Trump has warned that such actions will be met with an even harsher U.S. response. USD/CAD gains nearly 0.3%, rebounding after initially losing 0.4%. Canada will immediately impose 25% tariffs on U.S. goods worth CAD 30 billion, with additional tariffs on CAD 125 billion worth of goods taking effect within 21 days.
• Natural gas (NATGAS) futures have surged nearly 6.5% today as energy market uncertainty grows due to Canada’s retaliatory tariff response against the U.S. Oil declines by almost 1% to $71 per barrell
• The Canadian province of Ontario will impose a 25% export tax on electricity sent to 1.5 million homes in Minnesota, Michigan, and New York in retaliation for Trump’s tariffs. Meanwhile, Quebec will add a 25% penalty on U.S. firms bidding for government contracts.
• The crypto market is dominated by declines. Bitcoin is down nearly 1.5% intraday, trading around $85,000. However, earlier in the day, losses had reached as much as 5.8%. Other cryptocurrencies are also losing ground.
• Cotton futures fell to their lowest level since August 2020 after China—the world’s largest buyer of the fiber—imposed a new 15% retaliatory tariff on U.S. cotton and other agricultural products. Other agricultural commodities also declined on the Chicago Board of Trade, with corn falling 1.3% and wheat dropping 2%.
• Shares of U.S. retailer Target are down 3%, paring earlier losses triggered by an unexpectedly weak sales outlook for the current year. The company expects flat year-over-year comparable sales, falling short of the market’s modest expectation of around 2% growth.
• Larry Fink, CEO of BlackRock, has stated that stock market volatility is likely to remain high for at least the next six months, and 2025 could be a challenging year for investors.