27.02.25 - Welcome trade war

Nvidia's earnings release turned out to be a non-event last night, with the stock barely reacting. However, today painted a different picture. After an initial 2% rise, the stock took a sharp downturn, closing around 8% lower.
News about tariffs from the White House weighed on market sentiment, triggering significant losses.
The tariffs announced over a month ago and temporarily suspended will take effect on March 4. US President Donald Trump set 25% tariff on imports from Mexico and Canada, along with a 10% tariff on goods from China, an additional 10% levy.
At the same time, Trump announced a 25% tariff on autos and other imported goods from Europe. Further details are expected to be revealed at the beginning of April. European leaders reacted promptly and strongly, saying they will react firmly and immediately.

Markets: European indices down around 1%, Nasdaq down almost 3%, cryptos continue the downturn, oil and US dollar gain while gold takes a hit, interest rates moving sideways.

My View: It is interesting how quickly investors seem to forget. The tariffs were only temporarily suspended, and it was clear this issue would resurface by the end of the month, especially given Donald Trump's well-known stance on tariffs.
However, there is still time to negotiate a solution to avoid these tariffs. That said, I believe the tariffs could very well take effect this time. President Trump wants to assert his authority and prove that tariffs are not just a bluff but a real policy tool that can be implemented at any moment.

As I have previously mentioned, short-term market patterns driven by investors and speculators have largely ignored these negative factors in recent weeks. So, it is no surprise to me that stock market took a hit today. Expecting such a hit, my portfolio was well-positioned for this turmoil, closing the day even with a small gain.

Become a member to access more valuable market updates like this.