US Markets End Lower Amid Tariff Concerns
US equity markets ended mostly lower on Monday, with investors digesting President Donald Trump’s confirmation that tariffs on Canada and Mexico would proceed as planned in March. Technology shares led the declines, with the Nasdaq Composite dropping 1.2%, while Nvidia fell 3.1% ahead of its highly anticipated earnings report. Palantir tumbled nearly 11% amid concerns over reduced government spending, and Robinhood slid 3.2% despite the SEC dropping its investigation into the company’s crypto business. Meanwhile, the Dow Jones Industrial Average edged slightly higher, supported by gains in healthcare stocks, as investors processed mixed economic data. The Dallas Fed reported a sharper-than-expected contraction in Texas manufacturing activity, reflecting rising uncertainty surrounding tariffs.
Nasdaq Composite: -1.2%
S&P 500: Declined moderately
Dow Jones: A slight increase, driven by healthcare stocks
Bond Yields, Commodities, and Currency Markets
US Treasury Yields Fall
In fixed income, US Treasury yields declined, with the 10-year yield easing to 4.402%, as markets looked ahead to the PCE inflation report later this week.
Commodities: Oil and Gold Rise
WTI Crude Oil increased by 0.6%, reaching $70.85 per barrel, amid US sanctions on Iran.
Gold gained 0.5%, as investors sought safe-haven assets.
Currency Strength
The US Dollar strengthened against major currencies, reaching 106.7.
The Euro traded at 1.0473 against the Dollar.
European Markets See Mixed Performance
European markets were mixed, with Germany’s DAX rising on news that a conservative alliance won the federal election. However, the fragmented result could limit policy changes. The UK’s FTSE 100 and France’s CAC 40 edged lower.
STOXX 50: -0.4%
STOXX 600: Slight decrease of 0.1%
Prosus sank 9% after announcing a €4.1 billion acquisition of JustEatTakeaway.com, while Schneider Electric dropped 7%, and luxury shares also closed in the red. However, banks, insurers, and automakers posted gains.
Asian Markets Struggle Amid Tech Sector Losses
Most Asian markets ended lower on Tuesday, as technology shares took a hit ahead of Nvidia’s earnings report, compounded by concerns over tighter US controls on chip exports to China. Hong Kong’s Hang Seng was the worst performer, dropping 2%, while South Korea’s KOSPI fell just 0.4% after the Bank of Korea cut interest rates to support the economy.
Equities on the Move
Chinese Tech Giants Increasing Nvidia Orders
Chinese tech giants, including Tencent, Alibaba, and ByteDance, are significantly increasing orders for Nvidia’s H20 AI chips, driven by the global demand for DeepSeek’s low-cost AI models. Despite concerns over potential US export restrictions, the surge in orders is mainly attributed to the rapid rise of DeepSeek’s models, with analysts predicting Nvidia will generate over $12 billion in revenue from H20 shipments in 2024.
Microsoft Faces Slowdown Concerns
An analyst note highlighted Microsoft’s potential slowdown in leasing data centre capacity, raising concerns over oversupply as the company builds out AI infrastructure. While Microsoft’s stock fell just 1%, shares of related firms such as Siemens Energy and Schneider Electric dropped significantly, with skepticism growing over the payoffs of the AI boom.
Hims & Hers Health Inc Reports Weaker Q4 Earnings
Hims & Hers Health Inc reported weaker-than-expected fourth-quarter earnings, with a profit of $0.11 per share on revenue of $481.1 million, surpassing Wall Street’s revenue estimates but missing earnings forecasts. Despite this, the company raised its 2025 revenue forecast and expects strong growth in Q1 2025, with full-year revenue projected between $2.3 billion and $2.4 billion.
Prosus to Acquire JustEatTakeaway.com
Prosus has agreed to acquire JustEatTakeaway.com for €4.1 billion, significantly lower than its 2019 bid, aiming to create a major European food delivery player. The deal positions Prosus as the fourth-largest food delivery company globally, though it has led to a drop in its shares, while Just Eat’s stock surged by 54%.
UBS Upgrades Rheinmetall
UBS has upgraded Rheinmetall to “buy” from “neutral” and raised its price target to €1,208, citing strong revenue growth prospects driven by increased defense spending in Germany and Europe. The bank expects Rheinmetall to capture a significant share of NATO’s rising land-system spending, forecasting annual revenue growth of 26% through 2028, despite potential political hurdles and competition from US defense firms.
TD Cowen Raises Price Target for Mondelez
TD Cowen raised its price target for Mondelez to $71 per share, increasing its 2026 earnings per share estimate to $3.15, citing a 19% decline in cocoa spot prices and a 12% drop in futures, which should improve the company’s hedging position. The brokerage remains positive on Mondelez’s long-term prospects, highlighting its strong presence in emerging markets, leadership in snacking, and pricing power, with further upside potential if cocoa costs continue to normalize.
Jefferies Analysts Upgrade Nike to “Buy”
Jefferies analysts upgraded Nike to “Buy” and raised their price target to $115, citing the company’s efforts under CEO John Donahoe to tackle product and distribution issues, positioning Nike for a market rebound. Despite recent struggles, Jefferies sees a strong path forward with a projected V-shaped recovery in margins and EPS by fiscal 2027, driven by product innovation and restored wholesale partnerships.
BMO Capital Markets Upgrades Block Inc
BMO Capital Markets upgraded Block Inc to “Outperform” and raised its price target to $89, viewing the stock’s recent sell-off as an attractive entry point. The brokerage expects improved sentiment and achievable growth for Square and Cash App, driven by product innovations and a stronger focus on credit and lending-based products.
Upcoming Data and Events
Today, key economic data releases, including consumer confidence figures and home price indices, are expected to provide valuable insights into consumer sentiment and the health of the housing market. Alongside this, earnings season continues, with investors focused on reports from industry giants such as Home Depot, American Tower, and Heidelberg Materials, but also smaller companies such as CAVA Group and Instacart.
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