Daily Summary: Oil Hits 3-Year Low, German Bonds See Historic Selloff, Euro Surges on Germany's Fiscal Shift

US indices are on track to finish higher, with the S&P 500 rising 0.4%, Nasdaq 100 adding 0.5%, and Dow Jones Industrial Average gaining 0.6%.

EIA data showed US crude oil inventories increased by 3.614 million barrels versus expectations of a 0.8 million decrease, further pressuring oil prices despite reductions in gasoline and distillate stockpiles.

WTI crude oil plunged more than 3% to below $66 per barrel, reaching its lowest level since 2021, pressured by Trump's tariff policies, OPEC+ plans to increase production, and potential peace talks in Ukraine that could lift Russian sanctions.

German bond yields recorded their biggest jump since March 1990, rising 30 basis points after chancellor-in-waiting Friedrich Merz unveiled plans for a €500 billion infrastructure fund and defense spending exemptions from constitutional borrowing limits. Germany's proposed fiscal overhaul represents a dramatic shift in the country's approach to government borrowing, prompting Deutsche Bank economists to compare the scale and speed to German reunification 35 years ago.

The euro strengthened significantly against the dollar, rising 1.5% to $1.0781, with traders now betting the currency could reach as high as $1.20 in the coming months following Germany's historic fiscal policy shift.

ADP Nonfarm Employment Change data came in disappointingly low at 77K versus 141K forecast, suggesting policy uncertainty and slowdown in consumer spending might have led to layoffs or hesitancy in hiring.

The Trump administration is considering offering exemptions from tariffs on Canada and Mexico, with Commerce Secretary Howard Lutnick indicating potential relief for automakers in response to industry concerns about the 25% import tax.

Eurozone services PMI remained in expansion territory at 50.6 in February, with strong readings from Italy (53.0) and Spain (56.2) offsetting weakness in France (45.3), helping push the euro above 1.0700.

Moderna shares surged 4.5% following CEO Stephane Bancel's significant $5 million stock purchase through Boston Biotech Ventures, his first open market purchase since becoming CEO in 2011, as the company pivots from COVID-19 vaccines toward cancer therapies and RSV expansion.

CrowdStrike Holdings Inc. shares fell as much as 12% after issuing disappointing earnings guidance, with adjusted EPS forecast of $3.33-3.45 significantly below the $4.43 consensus estimate and $73 million in outage-related costs expected in Q1

President Trump addressed farmers' concerns about tariff impacts in his speech to Congress, asking them to "bear with me" while promising even better results than his first-term China trade deal despite retaliatory measures affecting agricultural exports.

European natural gas market sentiment is weakening as investment funds cut their net-long position to the lowest level since late July amid mounting geopolitical uncertainties and volatile price swings.

Treasury yields remained relatively stable compared to the volatility in European bonds, with the 10-year yield at 4.25% as short-term Treasuries extended gains fueled by bets the Federal Reserve will cut rates to prevent economic slowdown.