The S&P 500 futures are down 103 points, Nasdaq 100 futures are down 408 points, and Dow Jones Industrial Average futures are down 668 points. This indicates significant losses at the market open, with overseas equity markets also struggling.
Markets are reacting to tariffs imposed by President Trump. A 25% tariff has been placed on imports from Canada and Mexico and a 10% tariff on imports from China, raising worries about retaliatory measures and increased inflation.
The US dollar has gained strength due to the tariff news, pushing the US Dollar Index up by 0.8% to 109.20. Oil prices are also climbing, currently at $74.43 per barrel, a rise of 2.6%.
The 10-year Treasury yield has decreased by seven basis points to 4.50%, while the 2-year yield remains stable at 4.24%.
MicroStrategy (MSTR, Financial) did not acquire any new Bitcoin in the week ending February 2, coinciding with the pricing of its preferred stock offering. The company priced 7.3 million shares of 8% series A perpetual strike preferred stock at $80 each, raising $563.4 million. These funds are intended for general purposes, including future Bitcoin acquisitions. As of February 2, MicroStrategy held 471,107 bitcoins, purchased at an average price of $64,511 each. The stock fell 7.6% in premarket trading on Monday.
The consumer sector faces significant challenges due to new tariffs between the U.S. and its trading partners, including Mexico, Canada, and China. Retailers and auto companies are experiencing share price declines. However, Bank of America sees potential gains for Molson Coors (TAP, Financial) and Altria (MO, Financial), with the latter benefiting from a crackdown on illicit products. Analysts note persistent challenges in the U.S. nicotine industry but highlight potential election-related tailwinds for Altria.
President Donald Trump's imposition of tariffs on Canada, Mexico, and China has sparked fears of a trade war, leading to a slump in stock index futures. The tariffs, effective Tuesday, include 25% on most imports from Canada and Mexico and 10% on Chinese goods. Analysts suggest markets had underpriced these risks, leading to broader sell-offs.
The U.S. dollar surged against the Canadian dollar and Mexican peso following Trump's tariff announcement, hitting historic highs against these currencies. The tariffs are set to take effect on Tuesday, leading to significant currency fluctuations. The Canadian dollar and peso fell sharply, reflecting market reactions to the impending trade barriers.
Elon Musk, CEO of Tesla (TSLA, Financial) and SpaceX, has announced plans to dismantle the U.S. Agency for International Development (USAID) as part of his role in the Trump administration's Department of Government Efficiency. Musk criticized the agency as "beyond repair" and has already taken steps to reduce its staff and influence. This move aligns with broader government cost-cutting measures under Trump's leadership.
Tonix Pharmaceuticals (TNXP, Financial) is implementing a 1-for-100 reverse stock split to meet Nasdaq's minimum bid price rule. This strategic move aims to boost the trading price of its shares, ensuring compliance with exchange regulations.
ASML Holding (ASML, Financial) declared a quarterly dividend of $1.9193 per share, payable on May 6. The announcement follows positive evaluations of the company's financial health and growth prospects, with analysts highlighting ASML's solid fundamentals and potential for further market gains.
Stratasys (SSYS, Financial) shares rose 7% after reporting preliminary Q4 revenue exceeding estimates. The company anticipates maintaining an 8% EBITDA margin for FY2025, with potential for higher margins with increased revenues. Stratasys plans to release its full Q4 results on March 5, 2025.
Microsoft-backed OpenAI launched "deep research" in ChatGPT, a feature enabling multi-step online research. This new capability is part of OpenAI's efforts to enhance AI-driven data analysis and synthesis, providing users with comprehensive reports akin to those produced by research analysts.
Industrial metals and related stocks, including Teck Resources (TECK, Financial) and Alcoa (AA, Financial), declined as Trump's tariffs threatened global economic growth. Iron ore, aluminum, copper, and zinc futures fell, exacerbated by a stronger U.S. dollar, which increases costs for buyers.
Genius Group increased its Bitcoin holdings by $2 million to 440 Bitcoins, with a market value of $46 million as of January 31. This strategic move aligns with the company's focus on expanding its Bitcoin Treasury, reflecting confidence in the cryptocurrency's long-term value.
Tyson Foods (TSN, Financial) saw gains after exceeding FQ1 earnings expectations, with revenue up 2.3% year-over-year. The company reported strong performance in its beef and chicken segments, contributing to its best quarterly results in over two years.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.