Market Highlights

Market volatility resurfaced as trade war concerns overshadowed resilient U.S. housing and jobs data, with equities reversing gains ahead of Friday’s $4.5 trillion triple witching options expiry. Asian stocks stumbled following weak U.S. corporate earnings and lingering global uncertainty, while futures in Europe and the U.S. pointed to a cautious open.

Stocks rallied and bond yields fell after Jerome Powell reassured markets that the Fed sees no urgent need for action despite trade tensions, describing the inflation impact of tariffs as likely "transitory." The dovish tone fueled a global rebound, lifting Asian equities and Nasdaq futures, while the dollar slipped and copper surged past $10,000 amid tariff concerns.

Heavy selling resumed in Wall Street’s largest technology companies, with American shares snapping a two-day rebound amid signs investors are paring exposure in US risk assets. European stocks gained. One day before a Federal Reserve decision that will be parsed for an assessment on how President Donald Trump’s trade policies are affecting the economy, US equities slid, with megacaps hitting the lowest since September. Nvidia Corp. sank 3.4% despite laying out plans to expand its AI reign with robots and desktop systems. Data showing hot import prices didn’t help market sentiment either. Treasuries edged up after a solid $13 billion sale of 20-year bonds. Gold climbed to a fresh record

US stocks climbed for a second day, extending the recovery from a sharp drop that reached 10% last week, as industrial and energy shares rallied on economic data that while missing forecasts was able to quell concern about an imminent recession. More than 90% of the companies in the S&P 500 rose, overshadowing a slide in most megacaps. An equal-weighted version of the benchmark — one that gives Target Corp. as much clout as Apple Inc. — climbed 1.3%. While the latest economic data did little to alter traders’ bets on the Federal Reserve outlook, mixed retail sales brought some relief that consumer spending is not collapsing. As the chatter around tariffs subsided, equities continued to push away from technically oversold levels

Global banks appear to be giving top clients private information to win corporate-bond trading business, according to a new study showing the $56 billion-a-day market is stacked in favor of the most active investors with the broadest dealer networks. The study examined the profitability of trades by insurance companies, which are whales in the credit world. It found that those with the best access to Wall Street’s bond-trading desks often had better outcomes than other investors ahead of market-moving events, such as mergers and acquisitions and rating downgrades

It was only three weeks ago that exuberance over Donald Trump’s blueprint for the economy had vaulted US stocks to a record high. Today, with concern mounting over the goals and impact of his trade war, the S&P 500 tumbled into its first 10% correction in almost two years. Volatility surged anew across asset classes Thursday, extending a retreat from risk that has lopped $5 trillion from the US equity benchmark and shows signs of seeping into high-yield bonds. New salvos in President Trump’s tariff offensive spurred another race for havens in the Treasury market.

Cooler-than-forecast February inflation pushed stocks higher after two days of heavy losses. A kneejerk rally in bonds quickly reversed and yields rose across the curve amid concerns over an escalating trade war. Equities advanced after a selloff that put the S&P 500 on the verge of a technical correction. The bounce was led by tech megacaps, which got heavily hit during the recent market rout. While the surprise slowdown in consumer prices brought a degree of relief to traders, several voices on Wall Street saw the data as the “calm before the storm” given the uncertainties around the potential impacts of tariffs on the economy.

Stocks climbed in late hours after President Donald Trump said he doesn’t see a US economic recession, downplaying Wall Street’s jitters around his trade war. A $600 billion exchange-traded fund tracking the S&P 500 (SPY) rose after the close of regular trading. The WhiteHouse said 25% tariffs on steel and aluminum would take effect on Canada and other nations, as Trump backed off a threat to impose 50% duties on the largest US trading partner’s metals

Anxiety that tariffs and government firings will torpedo growth in the world’s largest economy extended a three-week stretch of volatility across global markets. American stocks got hammered as Wall Street tempered bullish views while demand for recession havens boosted sovereign bonds. A selloff in the S&P 500’s most influential group — big tech — weighed heavily on trading. The gauge came within a striking distance of a correction, extending its plunge from a record to 8.6%. The Nasdaq 100 saw its worst day since 2022. A gauge of the Magnificent Seven megacaps tumbled 5.4%. Treasury yields slid on bets that an economic slowdown would force the Federal Reserve to slash interest rates. Bitcoin slipped below $80,000.

A roller-coaster week for markets ended on that same note, with stocks whipsawing as traders tried to make sense of a myriad of headlines around the economy, tariffs and geopolitical developments. Just minutes after a slide that drove the S&P 500 down over 1%, the gauge staged an “oversold bounce” as Federal Reserve Chair Jerome Powell said the economy is fine. The Nasdaq 100 moved away from the threshold of a correction. Bonds fell. In the first signal of a positive response from President Vladimir Putin to US counterpart Donald Trump’s call for a ceasefire, Russia was said to be willing to discuss a temporary truce in Ukraine. The dollar saw its worst week since November 2022 Equities and Treasury yields fell on Monday as concerns about the health of the US economy weighed on investors’ appetite for risk