🗂️ Market Report.
📈 First of all, remember that today we will have the revision of US GDP growth for Q4. Tomorrow we will see the German CPI and the US PCE rate.
💻 Nvidia reported strong Q4 earnings, beating Wall Street expectations on both revenue and earnings per share, with adjusted earnings per share of 89 cents and revenue of $39.3 billion. The company said orders for its new Blackwell semiconductors are “amazing,” allaying doubts about a potential slowdown in spending on its hardware. Nvidia is undergoing a critical product transition, moving from selling individual chips to full AI computing systems that integrate graphics chips, processors, and networking equipment. Microsoft and Meta Platforms have earmarked substantial investments in AI, suggesting continued demand for Nvidia’s products. Nvidia’s Stargate data center project announced by the U.S. President will use the company’s Spectrum X ethernet for networking, further bolstering its data center business.
🇺🇸 Trump’s signaling of a potential delay in implementing tariffs on Canada and Mexico created uncertainty about U.S. trade policy, with a White House official later clarifying the previous March 2 deadline remains in effect.
🚗 Stellantis, the automaker behind brands like Jeep, faces uncertainty around tariffs promised by U.S. President Donald Trump that could significantly reduce its profits. Stellantis Chairman John Elkann, stated that products built in Mexico and Canada should “remain tariff-free,” and that the real opportunity is to close the loophole that allows vehicles with no U.S. content into the country. Detroit’s auto executives, including Ford’s CEO Jim Farley, have lobbied for tariffs directed at automakers who import vehicles from Asia or Europe, rather than those who have anchored their production in North America.
📉 If 25% tariffs were implemented on imports from Canada and Mexico, Stellantis would be among the most affected, as it makes 39% of its North American vehicles in those countries.
💵 Investors’ assumption that President Trump’s policies would spur U.S. stocks and the dollar to outperform globally is being increasingly tested. The Magnificent Seven tech companies are seen as able to weather economic weakness better than other industries, which could support the U.S. market in a global slowdown. The underperformance of U.S. equities and the dollar so far this year compared to global peers is partly due to developments outside the U.S.
🛢️ Donald Trump announced the cancellation of the oil concessions granted by Joe Biden to Venezuela, arguing that the Maduro regime had failed to comply on electoral issues and the deportation of criminals. Venezuela described the measure as ‘harmful and inexplicable’, claiming that it harms both its population and the United States, and pointed out that it only benefits the Venezuelan opposition.
🤝 The news comes hours after it was announced that Chevron, one of the largest oil companies in the United States, was in talks with the Trump administration to obtain an extension or relaxation of the sanctions that would allow it to continue or expand its operations in Venezuela.
💰 BlackRock surprises the market with the massive sale of more than 5,000 bitcoins, equivalent to 423 million dollars, in just 24 hours. This operation marks the largest outflow of capital since the launch of its Bitcoin ETF, generating significant downward pressure on the market. Bitcoin continues to fall, confirming the bearish trends anticipated in our reports of recent days, where we warned that the loss of $92,000 would be painful.
📊 Market View:
⚠️ Political and commercial tensions are accentuated while growing concern emerges in US industry about the tariffs imposed by Donald Trump.
📉 The Mini S&P 500 futures fail to consolidate above 6,000 points, and the charts begin to show bearish potential if the situation does not improve. Currently, Mini S&P futures are trading at 5,998.50 points. On the other hand, Nasdaq 100 futures attempted to recover 21,400 points during yesterday’s session, but failed and are now trading at 21,300 points.
💸 The dollar index has remained within the 106 range since the beginning of the week; it has not managed to exceed 107 points, but neither has it dropped below 106. Against this backdrop, the EUR/USD pair has still not consolidated above 1.05, and in the last few hours it has fallen back to 1.0475, its current level.
📈 As usual, European equities seem oblivious to these circumstances. DAX 40 futures are showing slight declines, but remain close to their all-time highs, currently trading at 22,685 points.
🛢️ Crude oil continues to weaken, with the market facing conflicting news within the oil industry. A barrel of Brent crude is trading at $72.15, while the West Texas Index is at $68.65.
🥇 Meanwhile, gold futures fell back to $2,900 an ounce, while Bitcoin, which reached 182,000 during yesterday’s session, has recovered in recent hours to around $86,200.
🌍 Geopolitics:
⚖️ The Supreme Court temporarily blocks the order requiring the Trump administration to release billions of dollars in US foreign aid from USAID, which funded journalists and NGOs around the world, promoting a specific political agenda.
🗨️ Trump: “The European Union was formed in order to screw the United States, that’s the purpose of it. And they’ve done a good job of it. But now I’m president.” Trump also said, “We’re going to announce that very soon, and it’s going to be, generally speaking, 25 percent.” This would apply to cars and other products.
🇷🇴 Romanian sovereignist candidate Calin Georgescu, winner of the last elections, has been detained by the police on the grounds of ‘possible irregularities in the electoral process’. Georgescu has been released under judicial control, but with severe restrictions that prevent him from making public statements, appearing in the media and creating social network accounts. The persecution of Georgescu began last December, when the Constitutional Court annulled the Romanian elections.
🗨️ A reminder of the words of the US Vice-President on this matter, J.D. Vance: ‘You don’t have shared values if you cancel the elections because you don’t like the result, and that happened in Romania’.
