Relentless selling continues on D-street. Although, selling in the broader market is seen to be more profound as the Midcap index has nosedived massively. What are the technical and fundamental expert suggesting? Is there more correction seen in the near-term? Let's find out.… pic.twitter.com/bIHAmerqa5
— ET NOW (@ETNOWlive) March 3, 2025
U.S. stock futures edged higher early Monday as investors awaited developments on President Donald Trump’s plans to impose tariffs on key trading partners this week. The Dow Jones Industrial Average gained 58 points, or 0.1%. The S&P 500 ticked up 0.3%, and the Nasdaq Composite advanced 0.4%.
Stock Market LIVE: Sensex surrenders gains to trade 250 points lower, Nifty below 22100https://t.co/dyfP6AlWoE
— ET NOW (@ETNOWlive) March 3, 2025
Commerce Secretary Howard Lutnick said Sunday that the exact tariff that will be levied against Mexico and Canada starting Tuesday is still “fluid,” meaning it could be lower than the proposed 25%. He added that the additional 10% duty on China imports is “set.” There were reports that Mexico has offered to match the U.S. tariffs on China, potentially as a way to avoid the tariffs set to be imposed on them. Investor Warren Buffett expressed concern, saying punitive duties could trigger inflation and hurt consumers.
“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” said the Berkshire Hathaway CEO. “Over time, they are a tax on goods.
Thoughts for @FortuneMagazine: "China is likely going to focus on what it needs to do, rather than a massive response. You don’t really want to upset a ‘bully’ further.”https://t.co/KipcYFSkMS
— Alicia GarciaHerrero 艾西亞 (@Aligarciaherrer) March 3, 2025
I mean, the Tooth Fairy doesn’t pay ’em.”
The uncertainty around Trump’s trade policy stirred up market volatility recently as all three major averages suffered a negative month.
Investors assess tariff impact
The S&P 500 declined 1.4% in February, while the Dow dropped 1.6%.
The tech-heavy Nasdaq Composite was the underperformer with a 4% loss, marking its worst month since April 2024. “Whether the stock market can survive this change remains to be seen. One way or another, tariffs will be a shock for the economy,” Chris Rupkey, chief economist at FWDBONDS, said in a note.
Cryptocurrencies rallied on Sunday after President Trump introduced a “strategic crypto reserve” for the U.S. that will include bitcoin and ether, as well as XRP, Solana’s SOL token, and Cardano. Bitcoin jumped 10% to nearly $94,000 after dipping on Friday. This action-packed week also includes the key February jobs report on Friday, which is expected to show that fewer jobs were created.
Wall Street analysts in January and February cut their first-quarter earnings estimates for S&P 500 companies by more than the 5-, 10-, 15- and 20-year averages, according to FactSet. The hardest hit industry groups in the first quarter were Materials and Consumer Discretionary stocks. This is the first time Trump has specified his support for a crypto “reserve” versus a “stockpile.” While the former assumes actively buying crypto in regular installments, a stockpile would simply not sell any of the crypto currently held by the U.S. government.
