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28.02.2025 11:17 AM
Stock Market on February 28th: S&P 500 and NASDAQ Knocked Out

Futures on U.S. stock indices plunged, continuing their second consecutive bearish week. During today's Asian trading session, S&P 500 futures lost 0.3%, while the tech-heavy NASDAQ declined by 0.5%. The sell-off in equities intensified in Asia, while the U.S. dollar strengthened. U.S. Treasury yields declined as investors avoided risky bets amid increasing clarity regarding President Donald Trump's tariff policies.

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At the close of yesterday's trading session, the S&P 500 fell by 1.6%, while the Nasdaq 100 lost 2.8%. Nvidia Corp. shares dropped by 8.5%. The yield on 10-year U.S. Treasury bonds declined to approximately 4.23%, marking the lowest level seen since December.

The latest round of Trump's tariffs on Canada, Mexico, and China triggered a sell-off in risk assets, driven by fears of a potential negative impact on global economic growth. Bitcoin, often referred to as "Trump's trade," dropped by more than 10%, while the U.S. Dollar Strength Index rose.

Yesterday, Trump confirmed that the 25% tariffs on Canada and Mexico will take effect on March 4, while Chinese imports will face an additional 10% levy starting in April. Economists warn that these tariffs could harm U.S. economic growth, fuel inflation, and potentially push Mexico and Canada into recession. China has vowed to take all necessary countermeasures against U.S. actions.

Trump's decision has sparked widespread criticism both within the U.S. and internationally. Many lawmakers and business leaders have expressed concerns about the potential negative consequences for the American economy and trade relations. They argue that tariffs will lead to higher prices for consumers, reduced competitiveness for American companies, and instability in the global economy. China's possible retaliatory measures could include imposing tariffs on American goods, reducing imports from the U.S., and implementing other economic sanctions. The escalation of the U.S.-China trade war could have serious repercussions for the global economy, including slower economic growth, rising inflation, and heightened financial market volatility. Mexico and Canada are also considering countermeasures against the U.S., which may involve tariffs on American goods and formal complaints to the World Trade Organization (WTO).

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In the commodities market, oil has suffered monthly losses, while gold is on track for its first weekly decline this year.Regarding the technical outlook for the S&P 500, the decline continues. The primary objective for buyers today is to break through the nearest resistance at $5,877, which could pave the way for further growth and a move toward $5,897. A key priority for bulls will also be securing control above $5,915, which would strengthen their position. If risk appetite weakens and the market moves downward, buyers must step in at $5,854. A breakdown below this level would push the index back to $5,833 and could open the door to $5,813.

Jakub Novak,
Analytical expert of InstaForex
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