Markets rebound as Trump delays tariffs 14/02/2025

HOT stories for today

US market wrap:

• Stocks advanced Thursday as fresh inflation data and U.S. tariff updates eased concerns over rising prices and trade tensions.   The Dow Jones Industrial Average gained 0.77% to 44,711.43, the S&P 500 rose 1.04%, and the Nasdaq Composite climbed 1.50%.   The Dow peaked after President Donald Trump ordered a review of reciprocal tariffs but held off on new levies. Tech stocks powered the rally: Nvidia gained 3.2% after Hewlett Packard Enterprise shipped its first solution with Nvidia’s Blackwell chip, AppLovin soared 24% on earnings, and Tesla rose 5.8%.  
• Despite hot headline numbers, PPI and CPI data hint that the upcoming PCE index, the Fed’s key inflation gauge, may be softer than expected.   The U.S. dollar weakened as investors embraced risk. With a long weekend for Washington’s Birthday ahead, it remains to be seen if bulls will maintain their momentum.  

Markets rebound as Trump delays tariffs

• Markets rallied Thursday as relief over President Donald Trump’s tariff delay eased investor fears. Despite ongoing trade concerns, optimism won out, with traders adopting a “tomorrow will be better” mindset. Rather than dwelling on future uncertainties, markets focused on the immediate silver lining.
• Earlier in the day, Trump signed a memorandum outlining his plan for “reciprocal tariffs” on foreign nations. Under the proposal, the U.S. will impose tariffs on countries using non-tariff barriers, such as value-added taxes (VATs), which Trump called unfair trade practices. However, the new tariffs will not take effect immediately. The White House will first conduct a review to determine appropriate tariff levels for each country. The delay offered markets room to breathe, with investors choosing to focus on potential resolutions rather than immediate risks. Optimism over a cooling trade war helped lift stocks, showing that, for now, traders are willing to face tomorrow’s challenges when they arrive.

 
Stocks on the move:       

• Roku (ROKU) – The streaming platform soared 10% after reporting a fourth-quarter loss of 24 cents per share, beating analysts’ expectations of a 40-cent loss, according to LSEG.
• Airbnb (ABNB) – The vacation rental giant jumped 12% after posting fourth-quarter earnings of 73 cents per share on $2.48 billion in revenue, surpassing analysts' forecasts of 58 cents per share and $2.42 billion in revenue, per LSEG.
• Coinbase (COIN) – The cryptocurrency exchange climbed nearly 1% as fourth-quarter earnings exceeded projections. A postelection surge in crypto markets fueled strong trading revenue for Coinbase.
• Applied Materials (AMAT) – The semiconductor manufacturer dropped 5% after projecting fiscal second-quarter revenue of $7.1 billion, falling short of the $7.21 billion estimate from LSEG. Despite the guidance miss, the company exceeded analyst expectations on both revenue and earnings for the previous quarter.
• GameStop (GME) – The video game retailer and meme-stock icon surged 7% in after-hours trading. According to CNBC sources, GameStop is exploring potential investments in bitcoin and other cryptocurrencies, though the company is still evaluating the strategic fit for its business model.

 
Today’s action

• Asia-Pacific markets showed a mixed performance on Friday following Wall Street's overnight gains, driven by relief over President Donald Trump’s decision to sign a reciprocal tariff plan without immediate implementation. Mainland China’s CSI 300 Index climbed 0.65%, while Hong Kong’s Hang Seng Index surged 1.86%, extending its winning streak. South Korea’s Kospi gained 0.37%, with the small-cap Kosdaq rising 1.12%.
• However, Japan’s Nikkei 225 slipped 0.68%, and the broader Topix index edged down 0.14%. In U.S. futures trading, S&P 500 futures remained flat Thursday night after Trump postponed new reciprocal tariffs. Dow Jones Industrial Average futures rose slightly by 23 points, while Nasdaq 100 futures dipped 0.1%. Despite Thursday's market rebound, Mark Malek, chief investment officer at Siebert, cautioned that the positive momentum from the tariff pause could be short-lived. On Friday, traders will keep an eye on biopharma giant Moderna (MRNA), which is set to release earnings before the bell, along with the latest U.S. retail sales data.

Wahtclist: ARM, ROKU, ABNB, COIN, AMAT, GME, TWLO, DKNG

Bitcoin

• Bitcoin (BTC) is showing a modest recovery, trading at $95,863.12, up 0.50% over the past 24 hours, according to CoinMarketCap. However, the leading cryptocurrency remains down 2.33% on the weekly chart, reflecting ongoing market uncertainty. Over the past day, BTC has traded between $94,777.27 and $98,151.03, highlighting persistent volatility as investors gauge market conditions.
• Despite the choppy price action, Bitcoin’s market dominance has edged up by 0.16% to 61.06%, according to TradingView data. This increase suggests traders continue to favor BTC over altcoins amid the uncertain market backdrop.The slight rebound follows a market-wide decline triggered by negative inflation data, with cautious optimism returning as traders reassess their positions. However, volatility remains elevated, keeping the market on edge.
  Watchlist: Bitcoin: 89 000-108 000, Ethereum: 2200-3000, Solana: 180-276

Forex

• EUR/USD held firm around 1.0460 during Asian trading hours on Friday, following three straight sessions of gains. The pair was supported by US dollar weakness after President Donald Trump postponed the implementation of reciprocal tariffs. Additionally, falling US Treasury yields added to USD softness. Traders are now eyeing the Eurozone’s Q4 GDP, expected to show 0.9% annual growth, and US January retail sales, forecasted to decline 0.1% after a 0.4% rise previously.
• Meanwhile, USD/JPY traded near 152.60, steady after losses in the previous session. The pair faced pressure following Trump’s tariff delay and weaker US yields across the curve. Japan’s Economy Minister Ryosei Akazawa stated that authorities would act appropriately regarding US reciprocal tariffs. Investors remain cautious ahead of the upcoming US retail sales report, which could drive further market moves.
  Watchlist: EUR/USD: 1.0200-1.0550, USD/JPY: 153.6-158.80

Basic Materials

• Gold (XAU/USD) edged higher during Friday’s early European session, supported by escalating trade war concerns linked to US President Donald Trump's tariff plans. Additionally, a decline in US bond yields provided further lift to the precious metal. Investors are also eyeing the upcoming US January Retail Sales data, set for release later in the day.
• Meanwhile, West Texas Intermediate (WTI) crude climbed to $71.30 in early Asian trading. The mild gains come after President Trump announced a delay in implementing new tariffs until at least April. However, hopes for a potential Russia-Ukraine peace deal could limit further upside for WTI. Both markets are reacting to shifting geopolitical and economic signals, with traders bracing for further volatility ahead.
  Watchlist: GOLD 2600-2902, US Oil: 70.00-79.00

Key Economic Events Today:

EST time
05:00 am: EUR Flash GDP
08:30 am: USD Core Retail Sales
08:30 am: USD Import Prices
09:15 am: USD Industrial Production
10:00 am: USD Business Inventories
03:00 pm: USD FOMC Member Logan Speaks

Earnings

BMO (Before the US Market opens)
ENP             Enbridge Inc.
TRP             TC Energy Corp.
FTS              Fortis Inc.
MRNA          Moderna Inc.
AMC (After the US Market closes): Enjoy your long weekend!

The TEFS Analyst team wishes you a successful day!