Market Recap
Tuesday saw broad losses across US stocks market as renewed tariff threats from Trump against Canada triggered investor concerns. The S&P 500 extended its decline from February highs, at one point falling over 10%, before paring some losses but still closing lower.
Investors remained highly focused on tariff developments. Earlier in the day, Trump announced plans to double tariffs on Canadian steel and aluminum to 50% in retaliation for Ontario’s surcharge on US electricity imports, sending stocks tumbling. However, later in the session, he stated he was re-evaluating the tariff hikes and could make a “different decision,” which helped stocks recover some ground.
Market volatility surged amid conflicting policy signals. The Cboe Volatility Index (VIX) jumped above 27, remaining above the critical 20 level throughout the month, reflecting heightened market uncertainty.
Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, remarked, “Markets hate uncertainty. As long as Trump keeps making new tariff announcements daily, volatility will persist. Investors not only have to process fresh information but also navigate the unpredictability of negotiations and potential policy reversals.”
US Stocks Market Highlights
Tech stocks showed mixed performance, with Tesla and Broadcom up over 3%, while Nvidia, Amazon, and Meta gained over 1%. Apple fell nearly 3%.
Precious metals, base metals, and cryptocurrency stocks rallied:
- Vista Gold surged 11%
- Century Aluminum gained 9%
- Strategy rose 9%
- Coinbase jumped 7%
- Hecla Mining climbed 6%
- Pan American Silver added 4%
Retail and transportation stocks suffered sharp losses:
- Kohl’s plunged 24%
- Union Pacific dropped 4%
- CSX Corp fell 3%
Chinese stocks saw broad gains, with the Nasdaq Golden Dragon China Index surging 2.83%:
- Hesai Technology skyrocketed 50%, amid reports of supplying Mercedes-Benz with LiDAR sensors
- Zeekr climbed 18%
- Nio surged 17%
- Xpeng rallied 14%
- Li Auto gained 7%
- Alibaba and Bilibili advanced over 4%
US Stocks Market – Technical Analysis
US Stocks Market Performance
- Dow Jones fell 478.23 points (-1.14%) to 41,433.48
- Nasdaq declined 32.22 points (-0.18%) to 17,436.10
- S&P 500 lost 42.49 points (-0.76%) to 5,572.07
Hong Kong Stock Market Highlights
Hong Kong stocks opened higher but reversed gains:
- Tech stocks struggled:
- Bilibili, Lenovo fell over 4%
- Xiaomi, Meituan declined over 2%
- JD.com, Tencent dropped over 1%
- Alibaba managed a 1% gain
- Automakers rallied, led by Great Wall Motor, which surged 11% following strong retail sales data.
The China Passenger Car Association (CPCA) reported:
- February passenger car retail sales totaled 1.386 million units, up 26% YoY
- Cumulative sales for January-February grew 1.2% YoY
- Analysts at BOCOM International expect China’s auto market recovery to continue into March, driven by aggressive promotions and new model launches.
Hong Kong Market – Technical Analysis
Hong Kong Market Performance
- Hang Seng Index declined 0.67% to 23,623.55
- Hang Seng Tech Index fell 1.03% to 5,905.48
- China Enterprises Index dropped 0.63% to 8,700.56
A50 & China A-Share Market Highlights
Chinese A-shares traded within a narrow range, with a total turnover of ¥1.03 trillion. Despite the overall downturn, more than 2,800 stocks advanced.
Top-performing sectors:
- HVDC transmission technology
- Event management
- Power equipment
- Thermal materials
- Dry-type transformers
Worst-performing sectors:
- Servo systems
- Industrial automation
- Construction machinery exports
- Valves and hydraulic components
- Specialized power supply
China Market – Technical Analysis
China Market Performance
- Shanghai Composite Index fell 0.14% to 3,375.17
- Shenzhen Component Index edged up 0.02% to 10,863.06
- ChiNext Index slipped 0.24% to 2,198.74
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Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
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