10/03/2025 Daily Reports
Markets Slide as US Economic Worries Deepen; Trump’s Policies Fuel Investor Jitters
- Global stocks and Treasury yields fell on Monday as concerns over the US economy and President Donald Trump’s tariff policies weighed on investor sentiment.
- S&P 500 futures declined 0.4%, while Nasdaq 100 contracts also slipped. Asian markets sold off sharply, with Chinese tech shares in Hong Kong dropping 3%.
- Haven assets, including the yen, Swiss franc, and gold, gained as bond traders signaled rising recession risks.
- US job growth slowed in February, with unemployment climbing to 4.1%, adding to fears of an economic downturn.
- Trump’s tariffs on Canada, Mexico, and China, along with mass federal layoffs, have increased uncertainty, prompting some analysts to warn of stagflation risks.
- In Europe, markets edged higher after Germany eased fiscal austerity and increased military spending.
- Meanwhile, China’s inflation fell below zero for the first time in over a year, underscoring weak demand despite government stimulus efforts.
- China also retaliated against US tariffs with new levies on Canadian agricultural exports.
- Adding to global political shifts, Mark Carney was elected as Canada’s next prime minister, which could reshape the country’s trade stance.
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Global Markets Tumble as US Stocks Lead the Decline
US Stock Markets Experience Sharp Losses:
- S&P 500 futures fell 1.2%, while Nasdaq 100 futures dropped 1.4%.
- The Dow Jones Industrial Average futures declined 1%, marking another tough session for Wall Street.
- Tech giants faced heavy losses, with Nvidia and Tesla leading the declines. Tesla slid nearly 3% as China shipments plummeted, raising concerns over global demand.
US Economic Concerns Mount Amid Fiscal Uncertainty:
- Trump’s protectionist policies and federal workforce reductions are raising alarms about the country’s economic outlook.
- Treasury Secretary Scott Bessent ruled out interventions to support the stock market, dismissing the possibility of a “Trump Put”—a safety net for equities.
- The market is increasingly worried that tariffs and government spending cuts will dampen corporate earnings and consumer spending.
Commodities and Cryptocurrencies See Mixed Moves:
- WTI crude oil prices edged up 0.5% to $67.38 per barrel, supported by supply concerns.
- Gold held steady near $2,904 per ounce after last week’s 2% rise, as investors sought safe-haven assets.
- Bitcoin rebounded 0.5% to $83,499, while Ethereum surged 3.9% to $2,127 after days of losses.
Key Economic Events to Watch This Week:
- Tuesday: Japan GDP, US job openings data
- Wednesday: Canada interest rate decision, US CPI inflation report
- Thursday: US PPI, initial jobless claims, Eurozone industrial production
- Friday: German & French CPI, UK industrial production, US consumer sentiment (University of Michigan)
What’s Next?:
- The market is entering a critical phase where investors are weighing economic slowdown risks against policy uncertainty.
- The decline in Treasury yields signals growing concerns about weaker growth, while the selloff in equities, particularly in the tech sector, highlights fears over earnings headwinds.
- Meanwhile, European markets are reacting to shifting fiscal policies, with Germany’s defense spending plans reshaping the bond landscape.
- As risk appetite fades, safe-haven assets like gold and bonds remain attractive, but volatility could persist as traders assess upcoming inflation data and central bank moves.
