- Investors on Wall Street are trading with noticeable restraint, unmoved by the release of the FOMC minutes. The S&P 500 and Nasdaq posted marginal gains (+0.3% and +0.2%, respectively), while the DJIA and Russell 2000 remained in the red (-0.32% and -0.53%). The stock market reaction to the Fed’s latest meeting minutes was positive
- In January, Fed officials emphasized the need to postpone interest rate cuts until they gain sufficient confidence in a continued decline in inflation. Overall, the minutes can be interpreted as slightly hawkish, though since the January meeting, several factors have emerged that favor a more dovish approach—including a de-escalation in trade war risks, a drop in oil prices, and the weakest U.S. retail sales report since 2021.
- European indices experienced a significant pullback after tensions between Donald Trump and Ukrainian President Volodymyr Zelensky escalated. Key markets saw sharp losses: Germany’s DAX (-1.8%), France’s CAC 40 (-1.17%), UK’s FTSE 100 (-0.62%), Italy’s FTSE MIB (-0.53%), Spain’s IBEX 35 (-1.63%), and Switzerland’s SMI (-0.74%).
- ECB’s Isabel Schnabel made a hawkish remark, stating that she is "not sure whether monetary policy in the Eurozone remains restrictive." Her statement significantly lowered market expectations for rate cuts in 2025, with only two full cuts now priced in instead of three. The probability of a March rate cut remains near consensus at 96%.
- Meanwhile, EU Commissioner Maros Sefcovic said the European Union would be forced to respond to U.S. tariffs, though he emphasized a willingness to engage in dialogue, particularly regarding Big Tech regulations.
- The U.S. dollar continues its rally, with the Dollar Index (USDIDX) up 0.2%. USD/JPY is down 0.25%, as the Japanese yen regains momentum. AUD/USD is down 0.14%, recovering slightly after news of potential U.S.-China trade agreements eased tariff war fears. EUR/USD is down 0.3%, marking its third consecutive session of decline against the dollar.
- Natural Gas (NATGAS) posted significant gains (+4%), driven by cold weather forecasts in the U.S. and higher expected heating demand. Brent and WTI crude oil remained flat for the session. Maxar Technology latest forecast models show colder-than-expected temperatures across the central and eastern U.S. through early March amid Arctic weather hit
- In agricultural commodities, ICE cotton futures dropped nearly 1.5% to $67 per contract, leading losses in the sector. Corn retraced a large portion of its gains following contract rollovers. Coffee contracts posted slight gains.
- The cryptocurrency market is attempting a rebound, but Bitcoin is struggling to maintain the $96,000 level. Despite this, most smaller cryptocurrencies are seeing gains of 2–6%.
- Gold declined by 0.3%, hovering near $2,930 per ounce. Silver dropped over 0.5%, while palladium was the hardest hit among precious metals, plunging nearly 1.8%.
- Geopolitical tensions are heating up as Donald Trump criticized Ukrainian President Volodymyr Zelensky, arguing that Ukraine should hold elections and accusing Zelensky of lacking public support for a potential peace deal proposed by the White House.
- Hims & Hers Health shares skyrocketed nearly 25% today after announcing the acquisition of Trybe Labs, a strategic move into AI-powered personalized healthcare and diagnostics. The company’s stock has surged nearly 200% YTD and an astounding 650% YoY, reflecting strong investor confidence in its long-term growth strategy.
- Parsons (PSN.US) shares fell nearly 11%, despite reporting record-breaking Q4 2024 revenue of $1.7 billion (+16% YoY). Key earnings highlights include organic revenue growth of 14%, marking eight consecutive quarters of double-digit expansion. Net income increased 21% to $54 million, while adjusted EBITDA rose 14% to $147 million. Despite strong fundamentals, investors reacted negatively, likely due to higher-than-expected expenses or weaker guidance.
- Star Bulk Carriers (SBLK.US), one of the largest U.S. dry bulk freight companies, tumbled nearly 10%, approaching multi-year lows. The selloff followed Jefferies lowering its price target for the stock to $21, signaling growing concerns over the freight market outlook.
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