| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 43,840.91 | 601.41 | 1.39% |
| S&P 500 | 5,954.50 | 92.93 | 1.59% |
| Nasdaq | 18,847.28 | 302.86 | 1.63% |
| VIX | 19.63 | -1.5 | -7.10% |
| Gold | 2,881.30 | 32.8 | 1.15% |
| Oil | 70.2 | 0.44 | 0.63% |
US MARKET
The macro news is just unrelenting in the US currently. And get used to it and it likely means, at the very least, heightened uncertainty / volatility. The S&P 500 lost almost 2% (worst sell off in 2025 to date) as Trump said Mexico and Canada would be unable to negotiate a reprieve from tariffs set to take effect Tuesday. The loonie and the peso slipped. The White House said Trump signed an order to tariff China at 20%, not 10%. A plunge in big tech weighed heavily on equities, which were also hit by weak manufacturing data.
The S&P 500 fell 1.8%. The Nasdaq 100 slid 2.2%. The Dow Jones Industrial Average dropped 1.5%. A gauge of the Magnificent Seven megacaps sank 3.1%. The Russell 2000 lost 2.8%. A UBS basket of US stocks negatively impacted by tariffs sank 2.9%. Crypto got smashed(-8.5%). Bonds rallied, gold was up. All up – a very big ‘risk-off’ day. And we haven’t even yet discussed the Institute for Supply Management’s manufacturing index.
The ISM index indicated that US factory activity last month edged closer to stagnation as orders and employment contracted, while a gauge of prices paid for materials surged to the highest since June 2022 as tariff concerns mounted. Over the last week we note there has emerged notable chatter about the risk of stagnation, even the use of the ‘R’ word – recession. The macro scene is evolving very quickly and we’d hesitate to say that equities are flashing red right now.
LOCAL MARKET
The S&P/ASX 200 Index gained 0.9% to close at 8,246 on Monday, recovering most of last week’s losses, buoyed by a rally in US stocks on Friday that helped end a challenging February on a positive note. However, investors remained cautious ahead of the March 4 deadline for US President Donald Trump’s proposed 25% tariffs on Mexico and Canada, along with an additional 10% duty on Chinese goods.
On the domestic front, investors responded positively to data showing a 5.9% jump in corporate profits in the fourth quarter, marking the strongest growth in two years. Among the top performers were BHP Group (1.4%), Fortescue (1.2%), Telstra Group (up 1.9%), QBE Insurance (up 1.6%), and Woodside Energy (up 1.9%). Meanwhile, trading in The Star Entertainment Group was halted due to liquidity concerns, raising fears of a possible bankruptcy.
As for today, Australian shares are poised to fall, after US President Donald Trump confirmed he will move forward with higher tariffs on major trading partners. Futures are down 1.3%, or 106 points lower, predicting the ASX 200 would erase the gain from the prior session.