Tuesday's Markets Update (February 25, 2025)

26 Feb 2025 by rate3

On Tuesday, tech and broader market indexes went down as Trump intended to limit Chinese chip exports, while the industrial-heavy Dow rose after data showed local expansion in the manufacturing sector, even though services contracted, which was accompanied by rising home prices indicating a resurging inflation. Tesla's market cap fell below USD 1 trillion. Treasuries ticked down on renewed expectations of Fed easing.

World's Markets:

EU stocks are mixed, with tech, which followed Wall Street's drop, in the red, and the defense sector in green as Germany forms a coalition government and talks about allocating a 200 billion military budget intensify. This also caused the euro to rise to a month high.
The Brazilian market performed well after an easing inflation report and positive earnings reports. Indian stocks are also gaining on the back of rising financial and FMCG sectors.
Chinese stocks stumbled after Trump's chip restrictions were announced. The Japanese yen strengthened to a 12-week high as investors fled from the USD.
Milei's reforms in Argentina continued to bear fruit as the economy grew at its fastest rate in 3 years, with manufacturing and agriculture adding 8% YoY.
Commodities and Currencies:

The dollar and oil are at their two-month lows on renewed concerns of an economic slowdown prompted by tariffs.
Crypto:

BTC plummeted to 85K, reaching a 3-month low under the combined weight of negative macroeconomic sentiment and technical factors, followed by ETH, SOL, and the rest of the coins/tokens.
The State Of Markets: Mixed, with tech falling on chip restrictions and industrials rising on defense.