At Bank of America, economists now believe the Fed is done cutting rates — and see a growing possibility that central bankers may, instead, need to consider raising rates. Additionally, President-elect Donald Trump’s proposed tariff policies, including reports of declaring a national economic emergency to impose widespread tariffs, has spooked investors, sending bond yields surging. The Russell 2000 index, which tracks smaller companies, fell 2.2%, highlighting concerns about the impact of “higher for longer” interest rates. Oil prices began Sunday trading higher after the U.S. slapped tariffs on goods from China, Canada and Mexico — all key trading partners. Traders appeared to search for safety in early Sunday night trading after the U.S. hit key trade partners with hefty tariffs on goods. The U.S. dollar advanced nearly 1% on Sunday night, continuing gains since President Donald Trump implemented https://www.forex-world.net/ tariffs over the weekend.
Bonds & rates
- “Some producers and manufacturers may elect to absorb some of the cost of the tariffs, but at 25%, that cost is too big to completely absorb.”
- Like the Swiss Market Index (SMI), the Dow Jones is a price index.
- The Russell 2000 index, which tracks smaller companies, fell 2.2%, highlighting concerns about the impact of “higher for longer” interest rates.
- Tyson Foods — The maker of Jimmy Dean sausage rose nearly 4% after fiscal first-quarter results topped expectations.
- Japanese auto giants Toyota and Nissan both fell more than 5% on Monday, while domestic rival Honda tumbled 7.2%.
- That was 1.7 percentage points above the December level and better than the Dow Jones estimate for 50%.
Here’s where the major averages stand heading into Monday’s close. The index was led higher by consumer staples and health care, each up around 0.5%. During Monday’s trading session, 5 out of the 11 S&P 500 sectors were trading in the positive.
“To us, Citi needs to keep its options open … for many years, we have thought a sale may be advantageous.” “Call us deluded, but we still think that permanent tariffs on the U.S.’s allies (Canada, Mexico) will not be a thing,” said Thierry Wizman, global FX and rates strategist at Macquarie. “That’s because concessions are an ‘easier’ way to deal with Trump’s ‘problems’ (from a cost-benefit and game-theoretic perspective), and Trump likes to make ‘deals’. Political and market pressure will also weigh on the parties to make concessions, as in 2018.”
Traders also digested the start of Federal Chair Jerome Powell’s two-day testimony in Congress. In his opening remarks, Powell told lawmakers the Fed is not in a rush to adjust interest rates and reiterated the central bank’s stance of not commenting on trade policy. Another part of the energy market swung higher following the U.S. tariffs on Mexico, Canada and China. The move shows traders expect these levies to drive up energy costs in the near term. President Donald Trump imposed long-threatened tariffs on goods from Canada, Mexico and China, sparking concerns about the prospect of a global trade war. Tech stocks came under pressure in premarket trading Monday, with shares of the Technology Select Sector SPDR Fund (XLK) falling more than 2%.
Analysts at Goldman Sachs now expect just two rate cuts from the central bank — in June and power trend December — as opposed to the previously anticipated three, citing job growth that exceeded expectations. US stocks closed mixed on Tuesday as investors assessed more tariff policy shifts from President Donald Trump and looked ahead to upcoming inflation data. Stocks tied to the price of the cryptocurrency also dropped in the premarket. Crypto services provider Coinbase slid more than 6%, while bitcoin proxy MicroStrategy tumbled more than 7%. Meanwhile, miners Riot Platforms and Mara Holdings fell nearly 7% and more than 7%, respectively. Stocks moving on tariffs — U.S. stocks reacted to the new 25% tariffs Trump levied Saturday on goods from Canada and Mexico, and 10% on China, effective at midnight Monday.
The Dow dropped by 697 points, closing at 41,938, while the S&P 500 fell by 1.5% and the tech-heavy Nasdaq index was lower by 1.6%. He has suggested the European Union could be next to face tariffs. The XLK is Der dow also coming off a negative week after developments from Chinese artificial intelligence startup DeepSeek raised concerns over AI spending.
Bitcoin falls, gold rises in risk-off move after U.S. tariffs
Get the latest updates on pre-market movers, S&P 500, Nasdaq Composite and Dow Jones Industrial Average futures. Like the Swiss Market Index (SMI), the Dow Jones is a price index. The shares included in it are weighted according to price; the index level represents the average of the shares included in it. The French luxury group reported better-than-expected sales on Friday, pushing its market cap above 300 billion euros for the first time. “The report should reduce the probability of near-term Fed cuts, though our more favorable outlook on inflation keeps us thinking a March cut is still more likely than not,” analysts at Morgan Stanley said in a note.
Traders are betting that bond yields could soon hit a dangerous level for stocks
Mexico stocks as represented by the iShares MSCI Mexico ETF (EWW) popped 1.7% in midday trading, following losses earlier in the day, after Mexico President Claudia Sheinbaum said tariffs against the country would be delayed by one month. Major U.S. indexes are attempting a turnaround in midday trading after the earlier sell-off caused by concerns around the impact of U.S. tariffs. The major stock averages closed lower to end Monday’s trading session. Yields edged up this week after a hotter-than-expected inflation report. Some traders are now eyeing the 10-year bond hitting 5% in the coming weeks.
- “A seven-ounce package at Central Market, which currently costs $4.98, would jump to $6.22 if the 25% tariff were fully passed along to consumers like me,” he said.
- Tech stocks came under pressure in premarket trading Monday, with shares of the Technology Select Sector SPDR Fund (XLK) falling more than 2%.
- Traders now expect just a 2.7% chance the Fed will cut rates at its policy meeting later this month, according to the CME FedWatch Tool.
- The U.S. tariffs on Mexican, Canadian and Chinese goods come about a week before the Super Bowl, perhaps the biggest U.S. sporting event of the year.
- When asked on Sunday about the prospect of tariffs on goods from the U.K.
- Rising yields signal concern about a stronger-than-expected economy, resurgent inflation and potentially fewer rate cuts in 2025 than anticipated.
- The shares included in it are weighted according to price; the index level represents the average of the shares included in it.
‘The damage is already done’: Why Ken Griffin thinks Trump’s tariffs are chipping away at American exceptionalism
Jones said it would take a maestro to introduce big policy changes and preserve the current state in the major asset classes. Please bear with us as we address this and restore your personalized lists. By signing up to newsletters, you agree to our Terms of Use and acknowledge the Privacy Policy. CNN and its affiliates may use your email address to provide updates, ads, and offers.
Mexico ETF spikes higher, Canada stocks underperform
In Europe, shares of French car parts supplier Valeo and automaker Renault fell 8.3% and 4%, respectively, during early morning deals. Meanwhile, Germany’s BMW, Volkswagen and Porsche were all seen trading off by around 5%. Japanese auto giants Toyota and Nissan both fell more than 5% on Monday, while domestic rival Honda tumbled 7.2%.
Her remarks also came as financial markets weighed the impact of tariffs President Donald Trump is planning to levy against Canada and China, though he is delaying duties against Mexico. Tyson Foods — The poultry and beef giant gained 1.8% after the company’s fiscal first quarter results exceeded expectations. Tyson posted earnings of $1.14 per share, more than the 90 cents per share estimated by analysts polled by FactSet. Traders on Friday expect a 25% chance the Fed will cut rates in March, down from Thursday’s expectations of a 41% chance, according to the CME FedWatch Tool.