AlexandrKudin @AlexandrKudin: "THE U.S.MARKET 🇺🇸 Yesterday, major indices..."

Czech Republic

THE U.S.MARKET 🇺🇸 Yesterday, major indices ended the day with a sharp decline: the S&P 500 fell 1.76%, the Dow Jones dropped 1.48%, and the Nasdaq slid 2.64%. Investors sold off stocks following the release of macroeconomic data and Trump's statements on tariffs. - Trump imposed tariffs of 25% on imports from Canada and Mexico (10% for Canadian oil), emphasizing that "there is no more room for negotiations." He also announced an additional 10% tariff on Chinese imports, on top of the 10% imposed on February 3rd. Global reciprocal tariffs, which could take effect on April 2nd, remain on the agenda. - China has already announced retaliatory tariffs of 10-15% on U.S. agricultural products. Canada responded by stating it would impose tariffs on over $ 100 billion worth of American goods within 21 days. Mexico has yet to disclose details of its potential countermeasures. - Investors fear that higher tariffs could negatively impact inflation, U.S. economic growth, and corporate profits. So far, tariff-related news has significantly influenced business and consumer sentiment. - According to ISM data, the manufacturing business activity index declined by 0.6 points to 50.3 in February, slightly below economists' expectations of 50.6. The report’s details were weak: new orders, production, and employment components all declined. Notably, the number of mentions of tariffs in survey responses increased significantly—20 times in the press release, compared to just 4 in January. - 7 of the 11 S&P 500 sectors closed lower. The oil and gas sector and material suppliers showed the worst performance amid falling commodity prices following OPEC+'s announcement of plans to maintain production increases and concerns about demand. The technology and consumer discretionary sectors also declined, led by the "Magnificent Seven" stocks, as investors reduced risk exposure. - On the upside, defensive sectors—consumer staples, utilities, and healthcare—closed in positive territory. Real estate led the gains as Treasury yields continued to decline. 🤔 Given weakening economic indicators and ongoing tariff uncertainty, I expect the sell-off in large U.S. technology stocks to continue. The shift from growth stocks to value stocks could benefit international markets, where value companies are more prevalent. However, the U.S. market may still find support from optimism about Trump’s plans to stimulate the domestic economy and implement deregulation. 📈 Today, market focus will remain on further statements regarding tariffs. Additionally, attention may turn to the earnings report from major retailer Target ( TGT), which could provide insights into the health of the consumer sector. HAVE A SUCCESSFUL DAY $SPX500 $NSDQ100 $DJ30 $GER40 $UK100

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NSDQ100

DJ30

GER40

UK100

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