US stocks tumbled on Thursday, deepening February’s losses as renewed trade tensions and economic concerns weighed on investor sentiment. President Trump confirmed that tariffs on Mexico and Canada will take effect on March 4, with an additional levy on Chinese goods, fuelling uncertainty across global markets. The S&P 500 and Nasdaq Composite suffered sharp declines, with the latter dragged lower by an 8.5% slide in Nvidia despite the chipmaker’s strong earnings report. Weak jobless claims data and signs of slowing economic growth further reduced risk appetite, sending investors scrambling for clarity ahead of key inflation data set for release on Friday.

Key Takeaways:

  • S&P 500 Suffers Steep Decline, Remains on Track for Worst Week in Six Months: The S&P 500 dropped 1.59% to close at 5,861.57, as market volatility intensified amid renewed trade tensions and economic concerns. With just one trading session left in February, the S&P 500 is down nearly 3% for the month, placing it on track for its worst monthly performance since September 2024.
  • Dow Jones Declines as Trade Uncertainty Weighs on Sentiment: The Dow Jones Industrial Average slipped 193.62 points, or 0.45%, to close at 43,239.50, as concerns over US trade policy dampened investor optimism. The blue-chip index, while posting a smaller decline compared to its peers, has struggled in February, with losses now approaching 2.9% for the month. 
  • Nasdaq Composite Sinks as Nvidia Leads Tech Sell-Off: The Nasdaq Composite plunged 2.78% to end the session at 18,544.42, dragged down by a sharp 8.5% drop in Nvidia shares. The Nasdaq is now down 5.5% for February, making it the worst-performing major index this month.
  • European Markets Slide as Trump Threatens 25% Tariffs on EU Imports: European stocks traded lower on Thursday as trade tensions escalated after Trump warned of impending 25% tariffs on European imports, particularly targeting the auto sector. The Stoxx 600 fell 0.51%, while the FTSE 100 managed to rise 0.28% to 8,756.21. France’s CAC 40 declined 54 points, or 0.66%, and Germany’s DAX dropped 271 points, or 1.19%. Italy’s FTSE MIB was the worst performer, tumbling 647 points, or 1.65%. 
  • Asian Markets End Mixed as Investors Evaluate Trade Uncertainty: Asian stocks traded mixed on Thursday, as investors digested fresh tariff threats from US President while Wall Street’s key benchmarks faced sharp declines. Japan’s Nikkei 225 edged 0.3% higher to close at 38,256.17, while the broader Topix index climbed 0.73% to 2,736.25. South Korea’s Kospi struggled, falling 0.73% to 2,621.75, while the small-cap Kosdaq slipped 0.07% to 770.85. Hong Kong’s Hang Seng Index lost 0.61%, weighed down by concerns over US-China trade tensions, while the mainland Chinese CSI 300 index rose 0.21% to 3,968.12. Meanwhile, Australia’s S&P/ASX 200 posted a modest gain of 0.33%, closing at 8,268.2. 
  • US Jobless Claims Surge to Highest Level of 2025, Fuelling Economic Concerns: US Initial jobless claims for the week ending February 22 jumped to 242,000, a sharp increase of 22,000 from the previous week’s revised figure. The reading, which exceeded the Dow Jones estimate of 225,000, marks the highest level of unemployment claims since October 2024. The data added to existing fears of a slowdown, following a series of weaker-than-expected economic reports, including declining consumer confidence, disappointing retail sales, and a drop in consumer sentiment.
  • US GDP Growth Slows to 2.3% in Q4, Raising Recession Fears: US economic growth slowed in the fourth quarter, with GDP expanding at an annualised rate of 2.3%, down from the 3.1% pace recorded in the previous quarter. The slowdown was further reflected in pending home sales, which fell 4.6% in January to their lowest level since the National Association of Realtors began tracking the metric in 2001.
  • Treasury Yields Edge Higher as Investors Brace for Inflation Data: U.S. Treasury yields inched higher as traders assessed weak economic data and Trump’s latest tariff threats. The benchmark 10-year Treasury yield climbed 3 basis points to 4.281%, while the 2-year Treasury yield ticked up to 4.074%. 
  • Oil Prices Climb Over 2% After Trump Cancels Chevron’s Venezuela License: Crude oil prices surged after the Trump administration revoked a license allowing Chevron to operate in Venezuela, raising concerns over future supply disruptions. Brent crude futures gained $1.51, or 2.08%, to settle at $74.04 per barrel, while US West Texas Intermediate (WTI) crude rose $1.73, or 2.52%, to close at $70.35 per barrel. 

FX Today:

  • Euro Extends Losses as 100-Day SMA Rejection Fuels Selling Pressure: EUR/USD declined to 1.0402 after failing to sustain momentum above the key 100-day SMA at 1.0532. The pair attempted a recovery but encountered strong resistance near 1.0500, triggering renewed downside pressure. With the euro now hovering just above the 50-day SMA at 1.0388, immediate support lies at this level, and a break lower could accelerate losses toward 1.0300. The broader trend remains bearish, with the pair well below the 200-day SMA at 1.0733. If downside momentum persists, further declines toward 1.0250 and psychological support at 1.0200 could be in store. On the upside, EUR/USD would need to reclaim 1.0500 to shift sentiment, with a break above the 100-day SMA opening the door for a move toward 1.0600.
  • Sterling Weakens After Failing to Break 200-Day SMA: GBP/USD continued its downward trend, sliding to 1.2609 as the pair struggled to hold above the 100-day SMA at 1.2642. Earlier in the session, an attempt to climb past the 200-day SMA at 1.2788 failed, triggering selling pressure that sent the pound lower. With the pair now below key moving averages, downside risks have increased, with immediate support at 1.2550, followed by the psychological 1.2500 level. A break below 1.2500 could intensify selling pressure, pushing GBP/USD toward the 50-day SMA at 1.2460. On the upside, a recovery above 1.2650 would be required for any meaningful rebound, with resistance near 1.2700 acting as a key test for bullish momentum. A break above the 200-day SMA at 1.2788 would signal a shift in sentiment.
  • Yen Holds Ground as USD/JPY Struggles Below 150.00: USD/JPY remained range-bound at 149.75, holding above the key 149.00 support level. The pair attempted to push higher but faced strong resistance near 150.20, preventing a breakout. The broader trend remains uncertain, with major resistance levels at the 50-day SMA at 154.69 and the 200-day SMA at 152.43 capping upside moves. If USD/JPY breaks above 150.20, further gains toward 152.00 could be on the horizon. However, failure to hold above 149.00 could increase selling pressure, with the next downside target at 148.50. 
  • Gold Retreats but Remains Above Key Support: Gold prices pulled back to $2,875 after facing strong resistance near $2,920. The metal had been in an uptrend, benefiting from safe-haven demand, but encountered selling pressure near recent highs. Despite the decline, gold remains above its 50-day SMA at $2,764, keeping the broader bullish trend intact. If gold holds above $2,850, another attempt to break through $2,920 and challenge the psychological $3,000 level remains possible. However, a failure to maintain support above $2,850 could lead to a deeper correction, with the next key level at the 100-day SMA at $2,717. A drop below $2,800 would be a warning sign of increased selling pressure, while a move back above $2,920 would confirm continued strength in the uptrend.

Market Movers:

  • eBay Slumps on Weak First-Quarter Guidance: eBay shares fell 8.2% after the company’s revenue forecast for the first quarter disappointed Wall Street. 
  • Rolls-Royce Surges as It Raises Guidance and Reinstates Dividend: Rolls-Royce’s American depositary receipts soared 14.3% after the company posted stronger-than-expected full-year earnings and upgraded its medium-term outlook. 
  • Teladoc Health Plummets on Wider-Than-Expected Loss: Shares of Teladoc Health sank 13.6% after the virtual healthcare provider reported a fourth-quarter loss of 28 cents per share, worse than analyst forecasts of 24 cents per share. 
  • Nutanix Rallies After Posting Strong Quarterly Earnings: Cloud computing company Nutanix surged 10.4% after reporting fiscal second-quarter earnings of 56 cents per share, handily beating analyst estimates of 47 cents per share. 
  • Snowflake Climbs on Earnings Beat: Data cloud analytics firm Snowflake advanced 4.5% after delivering fourth-quarter results that surpassed Wall Street expectations. 
  • C3.ai Slides Despite Beating Earnings Expectations: Enterprise AI software provider C3.ai dropped 9.7% despite reporting better-than-expected quarterly results. 
  • IonQ Tanks as Weak Guidance Disappoints Investors: Quantum computing firm IonQ plunged 16.8% after posting a worse-than-expected fourth-quarter loss of 93 cents per share, significantly missing the consensus estimate of a 25-cent loss. 

As the trading session came to a volatile close, markets extended their February declines, with the S&P 500 tumbling and the Nasdaq plunging 2.78%, led by an 8.5% drop in Nvidia. Investor sentiment remained fragile after President Trump confirmed that tariffs on Mexico and Canada will take effect on March 4, while an additional 10% levy on Chinese imports further fuelled trade concerns. Weak jobless claims data added to economic worries, as US GDP growth slowed to 2.3% in the fourth quarter. Treasury yields edged higher ahead of the key Personal Consumption Expenditures price index report, and oil prices jumped more than 2% after Trump revoked Chevron’s Venezuela license. With investors on edge, all eyes will now turn to Friday’s inflation reading.