Daily Summary: Markets Stabilize despite lower than expected retail sales

Wall Street showed signs of stabilization after last week's sharp correction, with the US500 rising 1.68%, while the US30 gained 1.65%, though the tech-heavy US100 gained 1.8%. US2000 led gains with over 2.2%.

U.S. retail sales rose only 0.2% in February (below the 0.6% forecast) after January's downwardly revised 1.2% decline, showing consumers pulling back on discretionary spending amid growing economic uncertainty.

European markets rebounded with the Stoxx Europe 600 rising 0.8%, bolstered by energy and healthcare stocks, with optimism about Germany's fiscal reforms potentially providing significant stimulus to its struggling economy.

The European auto industry continues its restructuring with Audi announcing plans to eliminate up to 7,500 jobs in Germany by 2029, primarily affecting administrative and development sectors, aiming to save €1 billion annually.

The Trump administration announced plans to construct housing on federal land to address the 7 million affordable home deficit in the United States, with the Interior Department and HUD collaborating to identify underutilized federal properties.

Intel shares jumped 8.1% today, leading both the S&P 500 and Nasdaq 100, as investors welcome incoming CEO Lip-Bu Tan's restructuring plans.

The market breadth improved significantly with most S&P 500 companies rising Monday, but the influential "Magnificent 7" tech stocks declined 1.8%, raising questions about whether AI investment advantages are already priced into shares.

Traders are showing increased confidence in market stability, significantly reducing hedges against potential deep slides, with the cost of options protecting against a 10% decline in the S&P 500 ETF falling to near the lowest level since 2023.

Treasury Secretary Scott Bessent downplayed concerns about the stock market downturn, calling corrections "healthy and normal," while expressing confidence that markets will thrive long-term under the administration's economic policies.

Gold continued its remarkable run, rising 0.4% to $2,999.68 per ounce, approaching the $3,000 milestone as investors seek safe-haven assets amid global trade tensions.

The Federal Reserve is expected to maintain current interest rates at its meeting this week, with markets not anticipating cuts before June or July as policymakers assess the economic impact of the administration's trade policies.

Acting SEC Chair Mark Uyeda signaled a regulatory shift from the previous administration, considering changes to cryptocurrency custody rules and mutual fund reporting requirements.

The US Dollar is one of the weakest currencies today, losing 0.4% to EUR and CHF. USDJPY is up 0.4% to 149.13.

Bitcoin rose 2.7% to $84,306.45 and Ethereum gained 3.7% to $1,930.66, recovering from earlier weakness as broader market sentiment improved.