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Monday, February 3

Some of the largest macro moves in the market today: Ethereum -10.5%. S&P 500 Index (US) -1.6%. Nasdaq 100 Index (US) -1.7%. Noteworthy US mega-cap moves today: Tesla Inc (TSLA) -3.9%. NVIDIA Corp (NVDA) -3.7%. Broadcom Inc (AVGO) -3.4%.

Recent market movements are heavily influenced by the announcement of new tariffs imposed by U.S. President Donald Trump on imports from Canada, Mexico, and China. Effective February 4th, these tariffs include a 25% levy on Canadian and Mexican goods and a 10% tariff on Chinese products. This escalation in trade tensions has led to significant declines across global equity markets; for instance, Japan's Nikkei index fell over 2%, while European indices like Germany’s DAX dropped approximately 1.6%. The uncertainty surrounding potential retaliatory measures from affected countries is contributing to fears of broader economic disruptions.

In addition to the immediate impact of Trump's tariff announcements, recent inflation data releases have also shaped market sentiment significantly this week. Eurozone inflation edged up unexpectedly to an annual rate of 2.5% in January compared with December's figure at 2.4%. Meanwhile, Italy reported its highest inflation since October last year due primarily to rising energy costs stemming partly from supply issues related to geopolitical factors such as reduced gas flows into Europe.

The combination of heightened trade war concerns alongside mixed signals regarding economic health—evidenced through fluctuating manufacturing PMIs across major economies including those within the Eurozone—has resulted in increased volatility among currencies as well as commodities like gold which remains near record highs amid safe-haven demand during risk-off trading conditions following news about escalating tariffs.

Ethereum (ETH/USD) [-10.6%] Ethereum's value has significantly declined today, dropping over 25% and reaching nearly three-month lows. This steep decline follows President Trump's announcement of new tariffs on imports from Canada, Mexico, and China, effective February 4th. The announcement has heightened market volatility, leading to substantial liquidations across the cryptocurrency markets. Reports indicate that Ethereum fell as much as 27% during Asian trading hours, with prices around $2,065. Notably, approximately $2.2 billion was liquidated from the crypto market in a single day, surpassing previous market collapses, including the FTX incident. The volatility metrics for Ethereum surged, prompting traders to buy put options as fears of a renewed trade war intensified. Additionally, whale activity was noted with a large entity purchasing 45,047 ETH at an average price of $2,480 after the market drop.

iShares China Large-Cap ETF (FXI) [-1.8%]
The iShares China Large-Cap ETF (FXI) has experienced a notable decline of 1.8% since Friday. This movement coincides with President Trump's recent imposition of tariffs on Chinese goods, raising concerns about supply chain disruptions and inflationary pressures. Additionally, the Caixin Manufacturing Purchasing Managers Index (PMI) for January was reported at 50.1, below expectations, indicating a contraction in manufacturing activity and further contributing to negative sentiment surrounding Chinese equities. In premarket trading, significant drops were observed in key holdings such as Alibaba, NIO, and Baidu. The performance of FXI was also affected by declines in JD and LI, both of which reported decreased deliveries and potential impacts from tariff-related cost increases. Furthermore, the decline in the AUD/USD currency pair by 0.90% may be reflecting broader market sentiment affecting FXI.

NVDA | -3.6% | -101.3B
NVIDIA Corp | Semiconductors NVIDIA Corp (NVDA) has experienced a price decline of 4.0% since Friday, coinciding with a broader market downturn. U.S. stock futures fell sharply, with significant drops in major indices, including the S&P 500 and Nasdaq. The decline follows President Trump's announcement of substantial tariffs on imports from Canada, Mexico, and China, raising concerns about potential trade tensions and supply chain disruptions. Additionally, billionaire investor Ray Dalio has expressed concerns regarding NVIDIA's valuation, likening the current environment to the late 1990s dot-com bubble. He pointed out competitive threats from Chinese AI startup DeepSeek, which has launched an AI model that reportedly surpasses U.S. counterparts at lower costs. Social media discussions have highlighted NVIDIA's drop to bear market territory and Morgan Stanley's price target reduction, further contributing to negative sentiment surrounding the stock.

F | -3.4% | -1.3B
Ford Motor Co | Automobile Manufacturers
Ford Motor Co shares have declined significantly in premarket trade, influenced by broader market movements. The recent imposition of 25% tariffs on imports from Canada and Mexico by U.S. President Donald Trump has raised concerns about its impact on the auto industry. S&P Global estimates that these tariffs could increase the average landed cost of a vehicle from these countries by over $6,000. Ford's reliance on manufacturing in Mexico for vehicle assembly and parts sourcing exacerbates this situation. Analysts are warning that such tariffs could potentially eliminate profits for major U.S. automakers, including Ford. Additionally, the Russell 2000 Index has also seen a notable decline, reflecting the prevailing negative market sentiment. Ford is set to announce its Q4 FY2024 earnings after market close on February 5, 2025, with expectations for EPS of $0.32 and revenue of $42.8 billion.

GM | -6.5% | -3.4B
General Motors Co | Automobile Manufacturers Shares of General Motors Co. have dropped significantly following the announcement of 25% tariffs on imports from Canada and Mexico. This decision has led to a decline in GM's stock price by approximately 6%. The tariffs are anticipated to heavily impact the auto industry, as a considerable portion of vehicles and components utilized in U.S. manufacturing is sourced from these countries. In 2024, the U.S. imported 3.6 million vehicles from Canada and Mexico, representing 22% of total sales. The added tariff cost of $6,250 on an average vehicle priced at $25,000 may be passed on to consumers, potentially straining the automotive market further. Social media conversations have echoed these concerns, warning that the tariffs could eliminate profits for major automakers, including GM. Additionally, there have been reports of increased volatility, with 400,000 shares of GM borrowed shortly before the market opened.

BLK | -2.7% | -4.1B
BlackRock Inc | Asset Management & Custody Banks BlackRock Inc is experiencing a notable decline, moving in tandem with the broader market, which has also dropped significantly. U.S. stock futures have fallen sharply following President Trump's announcement of substantial tariffs on key trading partners, prompting widespread market reactions. The Dow Jones Index has declined notably, reflecting the prevailing negative sentiment across equity markets. Additionally, BlackRock's Senior Managing Director Kushel J. Richard engaged in insider trading by exercising an option to buy 10,000 shares at $513.50 while selling the same number of shares at prices between $1,070.50 and $1,075.15. Furthermore, Robert Mitchnick from BlackRock has highlighted a growing institutional momentum regarding the approval of cryptocurrency exchange-traded products, which has gained traction on social media platforms.

IDXX | +6.8% | +2.5B
IDEXX Laboratories Inc | Health Care Equipment IDEXX Laboratories reported its fourth-quarter earnings, achieving a net income of 216.1 million, or 2.62 per share, surpassing the previous year’s figures of 194.5 million, or 2.32 per share, and exceeding analyst expectations of 2.40 per share. Revenue increased to 954.3 million from 901.6 million, also surpassing the estimated 935.1 million. The company provided guidance for fiscal year 2025, projecting revenue between 4.06 billion and 4.17 billion, in line with analysts' expectations of 4.14 billion. Additionally, IDEXX forecast earnings per share in the range of 11.74 to 12.24, compared to an analyst consensus of 11.94. These results were released approximately one hour ago, reflecting a strong performance that may positively influence market sentiment.

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