U.S. stock futures drop as Trump’s tariffs on Canada, Mexico, and China trigger a global sell-off. Get the latest market analysis, stock movers, global trends, and insights on gold, bitcoin, and investor sentiment.

• U.S. stock futures declined following a significant Wall Street sell-off due to Trump’s tariffs on Canada, Mexico, and China. Risk assets like stocks and cryptocurrencies plunged, with Bitcoin falling below $90,000. Affected countries implemented retaliatory measures, intensifying market volatility.
• U.S. stocks tumbled, with major indexes experiencing their worst single-day performance since December. Automakers and country ETFs were heavily impacted, while defensive stocks gained.
• Dow, S&P 500, and Nasdaq futures all showed losses.
• U.S. military aid to Ukraine put on hold.
• Tariffs on Canada, Mexico, and China took effect, with retaliatory measures implemented. Potential EU tariffs were also hinted.
• Target outperformed expectations but issued a cautious sales outlook.
• TSMC increased its U.S. investment to $165 billion.
• European markets opened lower, reflecting trade tension concerns, with auto stocks leading losses.
• Asia-Pacific markets trended lower, led by Japanese stocks, with various economic data impacting regional performance.
• Treasury yields dipped due to tariff impacts.
• Gold prices advanced as investors sought safety. Oil prices fell to a near three-month low due to trade tension impacts. Bitcoin fell, erasing gains from Trump’s crypto reserve announcement.
• Investors are bracing for heightened volatility. Fears around tariff impacts and economic weakness are prevalent. The upcoming jobs report is a key event for market direction.

Market Overview:

U.S. stock futures declined on Tuesday, following a significant sell-off on Wall Street triggered by President Donald Trump’s tariffs on Canada, Mexico, and China. The 25% levies, which took effect without exemptions, sparked retaliatory measures from the affected countries, intensifying market volatility. Risk-on assets like stocks and cryptocurrencies plunged, with Bitcoin falling below $90,000, erasing gains from Trump’s announcement of a U.S. strategic crypto reserve.

US Market Previous Day:

US stocks tumbled on Monday, kicking off March with sharp losses as investors reacted to President Donald Trump’s confirmation that tariffs on Canada and Mexico would take effect on Tuesday. The announcement dashed hopes of a last-minute deal, dragging major indexes to their worst single-day performance since December.

• S&P 500 fell 1.76% to 5,849.72, marking its worst day since December and flipping negative for the year (-0.5% YTD).
• Dow Jones Industrial Average dropped 649.67 points (-1.48%) to 43,191.24.
• Nasdaq Composite plunged 2.64% to 18,350.19, weighed down by a steep 8% drop in Nvidia and heavy losses in AI stocks like Broadcom and Super Micro Computer.
• The Russell 2000, which tracks smaller-cap stocks, sank close to 3%.

The session started on a positive note, with the Dow climbing nearly 200 points at its high. But stocks reversed course in the afternoon following Trump’s tariff comments, with sectors sensitive to trade policy bearing the brunt of the sell-off:

• Automakers: GM and Ford hit session lows as investors braced for retaliatory tariffs.
• Country ETFs: iShares Mexico (EWW) and iShares Canada (EWC) fell over 1%.

Meanwhile, defensive stocks gained ground as investors sought stability:

• Philip Morris International added 2%.
• PepsiCo, Procter & Gamble, and Johnson & Johnson all rose around 1%.

US Futures Remain in Red:

• Dow Jones Industrial Average futures decline by 0.26%
• S&P 500 futures showed losses of 0.66%
• Nasdaq Composite futures lead the pack with losses of 0.74%.

U.S. Premarket Movers:

Losers:

• Target (NYSE:TGT) fell 1.8% after issuing a cautious outlook for sales growth, citing uncertainty around President Trump’s evolving trade policy.
• Best Buy (NYSE:BBY) slid 1% despite reporting better-than-expected holiday sales, as heavy discounting dented profit margins.
• Tesla (NASDAQ:TSLA) dropped 3.9% after February sales of its China-made vehicles plunged 49.2% YoY to 30,688 units, the lowest since August 2022.
• Honeywell (NASDAQ:HON) declined 0.8% after announcing a $2.16 billion cash acquisition of pump-maker Sundyne, signaling an aggressive expansion strategy amid industrial market volatility.
• Amazon (NASDAQ:AMZN) lost 1.2% following a report that it’s developing its own AI model, potentially escalating competition with OpenAI and Anthropic.
• Microsoft (NASDAQ:MSFT) fell 1.4% after Wolfe Research warned the stock was at a critical technical level, with potential 15-20% downside if support fails.
• Illumina (NASDAQ:ILMN) dropped 2.9% as China banned imports of its genetic sequencers in retaliation to the U.S. tariffs, highlighting escalating trade tensions.

Gainers:

• AutoZone (NYSE:AZO) rose 1.1% after reporting mixed Q2 results, with revenue beating estimates despite an earnings miss.
• Taiwan Semiconductor Manufacturing (NYSE:TSM) gained 0.6% after announcing a $100 billion U.S. investment, reinforcing its commitment to expanding domestic production capacity.

Key Economic Data/News:

The White House confirmed Monday that military aid to Ukraine is on hold as Trump pushes for a peace deal. This follows Friday’s high-profile clash with Ukrainian President Volodymyr Zelenskyy, who left Washington without securing any concessions.

Trade War Intensifies:

• Canada & Mexico: A 25% tariff on imports takes effect today. In response, Prime Minister Justin Trudeau announced reciprocal 25% tariffs on U.S. goods.
• China: After Trump imposed a 10% tariff last month and added another 10% hike Tuesday, Beijing retaliated with up to 15% tariffs on U.S. agricultural products like corn and soybeans, starting March 10.
• Europe Next? Trump hinted Wednesday at expanding the trade war to the EU, suggesting 25% levies on pharmaceuticals, autos, and chips, adding further uncertainty for global markets.

Earnings Season/Company News:

Target outperformed expectations with its fourth-quarter results, yet its stock remained relatively flat as the company issued a warning about weakened sales in February. Target earned $2.41 per share on $30.92 billion in revenue, surpassing analysts’ predictions of $2.26 per share on $30.82 billion in revenue, as surveyed by LSEG.

Meanwhile, Taiwan Semiconductor Manufacturing (TSMC) is investing an additional $100 billion to boost chip production in the U.S., funding five new fabrication facilities in Arizona. TSMC, which provides semiconductors to companies like Nvidia and Apple for AI applications, is making significant efforts to expand its presence in the U.S. This new investment brings TSMC’s total U.S. investment to $165 billion.

Global Market Trends:

European stock markets opened lower on Tuesday, reflecting investor concerns over escalating trade tensions. The decline followed the U.S. decision to impose tariffs on Canada and Mexico, alongside increased duties on Chinese imports. The regional Stoxx 600 index fell 1.7%, with auto stocks leading losses. Germany’s DAX dropped 2.74%, France’s CAC 40 slid nearly 1.8%, and the U.K.’s FTSE 100 dipped 0.72%. Despite the downturn, European markets have shown resilience. The Stoxx 600 outperformed the S&P 500 in February, buoyed by rising defense stocks amid heightened geopolitical pressures. The index extended gains on Monday, as investors shifted focus to sectors poised to benefit from increased government spending.

In Asia-Pacific, markets also trended lower, led by Japanese stocks. The Nikkei 225 tumbled 1.20% to close at 37,331.18, while the broader Topix index declined 0.71% to 2,710.18. Japan’s unemployment rate edged up to 2.5% in January, slightly above forecasts of 2.4%. South Korea’s Kospi index slipped 0.15% to 2,528.92, and the small-cap Kosdaq fell 0.81% to 737.90. January retail sales declined 0.6% month-over-month, following a revised 0.2% increase in December. Hong Kong’s Hang Seng index dropped 0.16% in late trading, as investors monitored developments from China’s annual parliamentary gathering, known as the “Two Sessions.” Mainland China’s CSI 300 index closed flat at 3,885.22. In Australia, the S&P/ASX 200 ended 0.58% lower at 8,198.10. Retail sales rose 0.3% in January, in line with expectations, rebounding from a 0.1% decline in December. Overall, markets remain volatile as investors weigh trade policies, geopolitical risks, and economic data. The coming weeks may bring further fluctuations as global economies navigate an evolving landscape of political and financial uncertainty.

Debt Market:

On Tuesday, the 10-year Treasury yield dipped as U.S. President Donald Trump’s tariffs on Canada, Mexico, and China took effect. The benchmark 10-year Treasury yield fell approximately 4.2 basis points to 4.138%, while the 2-year Treasury yield decreased by 7.8 basis points to 3.902%.

Commodities and Other Assets:

Gold prices advanced on Tuesday as investors sought safety amid the turmoil sparked by new U.S. tariffs on Canada, Mexico, and China. The yellow metal, up nearly 10% year-to-date, continues to benefit from its safe-haven appeal, touching an all-time high of $2,956.15 on February 24. However, analysts at UBS noted that prices eased slightly toward month-end due to profit-taking and supply concerns in key markets like the U.S. and U.K.

Oil prices slumped to a nearly three-month low as markets grappled with the economic impact of escalating trade tensions. Fears that global trade disruptions could hurt economic growth — and, by extension, oil demand — weighed heavily on sentiment. China’s expected retaliation against U.S. tariffs added to the uncertainty, while news that OPEC+ plans to move forward with a production increase in April further pressured prices.

Bitcoin also struggled, falling around 3.5% on Tuesday and remaining more than 25% below its all-time high. The cryptocurrency initially surged on President Trump’s announcement of a U.S. strategic crypto reserve but quickly lost ground as broader risk-off sentiment took hold. February marked bitcoin’s worst month since 2022, with traders now looking to regulatory clarity as a potential catalyst for renewed momentum.

Market Sentiment:

Technical analysts are increasingly concerned that the S&P 500 could soon test its 200-day moving average, highlighting the market’s fragility as March begins. Monday’s sharp sell-off followed a rough February, during which the Dow and S&P 500 each lost more than 1%, while the Nasdaq Composite dropped around 4% — its worst month since April 2024. Fears around the impact of new tariffs and signs of economic weakness weighed heavily on sentiment. Soft manufacturing and construction data released Monday added to worries about the health of the U.S. economy, setting the stage for a turbulent week.

Investors are bracing for heightened volatility, with defensive stocks and crypto assets finding support, while risk-sensitive sectors like autos, semiconductors, and agriculture face mounting pressure. The week’s key event will be Friday’s jobs report, which includes nonfarm payrolls and unemployment figures for February. This data could provide crucial insights into the labor market and influence market direction in the days ahead. Let me know if you’d like me to dig deeper into any section or refine the flow.