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WEEKLY SUMMARY: Rate-cut hopes jump as stocks & crypto dump
Most U.S. stock indexes declined for the 2nd consecutive week, although the Dow finished 0.95% higher, adding to its year-to-date outperformance versus the other major indexes. Growth stocks significantly underperformed, and the Nasdaq recorded its worst weekly drop since early September as shares of NVIDIA fell 8.5% on Thursday following the chipmaker’s highly anticipated earnings report. Tariff fears also continued to be a drag on equities as President Trump reiterated plans to impose new levies on several trade partners by March 4. On the macro side, the US core personal consumption expenditures (PCE) price index rose by 0.3% in January, in line with expectations. Weekly U.S. unemployment benefits rose by 22,000 to 242,000, the highest level since October. U.S. Treasuries generated positive returns amid the week’s generally disappointing economic data. The pan-European STOXX Europe 600 Index ended 0.60% higher, posting its longest streak of weekly gains since August 2012. Encouraging company results and gains in defense stocks helped to overcome uncertainty about U.S. trade policy. Japan’s stock markets retreated over the week, with the Nikkei 225 Index falling 4.2%. WTI Crude prices bounced back to $70 on Friday as Ukraine chaos struck. Gold managed to hold on to gains in February despite falling for the last few days as broad-based liquidations spread. Crypto markets were a bloodbath as the cash-and-carry trade unwound. The dollar rose again on tariff talk.
Have a great week-end
Charles for the team