- The actions advanced on Friday morning with inflation data from the PCE in line with estimates.
- The peace meeting between Trump and Zelensky deviated after the VP called “disrespectful” to the Ukrainian president.
- Surveys show that investors are unusually bassists at the end of February.
- The Dow Jones index is quoted below the 100 -day mobile average.
The last day of February was unusually volatile while the operators sought to digest multiple holders as the session progressed.
The main stock market indices advanced at the beginning on Friday after the Federal Federal Reserve Inflation Report (FED) was in line with expectations for the January period. Previously, there were concerns that the Personal Consumer Expenses Report (PCE) showed an increase in inflation as the December report did.
However, the United States actions (USA) quoted down after a foul meeting at noon at the Oval office between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy. The two heads of state tried to negotiate a possible end to war between Ukraine and Russia, but now an agreement seems to be further. The actions of the main indices saw new weekly minimums in the middle of the session before recovering in the afternoon.
Zelenskyy challenged Trump and vice president JD Vance to offer security guarantees, which said they were necessary since he had already signed a high fire agreement in 2019 that Russian President Vladimir Putin broke with his invasion of Ukraine in 2022. In response, Vance called Zelensky “disrespectful” for negotiating in front of the reporters. The meeting became more intense and strange from there, and the Trump administration canceled a press conference scheduled for the afternoon.
In addition, a separate agreement to grant the US access to the mineral rights of Ukraine in exchange for military aid collapsed. The failed peace negotiations continue to the US vote against a United Nations resolution (UN) earlier this week to condemn the invasion of Russia, as well as the leader of the Christian Democratic Union of Germany, which led in the parliamentary elections this week, saying that it would move towards the independence of the United States.
January inflation data improve, but tariffs and layoffs scare the market
The PCE report for January, published before Friday opening, showed that underlying inflation increased by 2.6% year -on -year, which was in line with consensus and was much better than the December report, which was reviewed up to 2.9%.
Inflation has been a great concern at the beginning of this year, since the Trump administration is reaffirmed in tariffs. Trump reiterated that the tariffs would take effect on March 4. These include 25% tariffs to the main business partners of the US, Canada and Mexico, as well as an additional 10% to Chinese imports, raising the rate of the latter to 20%.
Analysts have noticed an increase in commercial flows as companies fill inventories before scheduled tariffs.
The tariffs add up to the US labor market since Trump’s advisor Elon Musk – known for his leadership in Tesla (Tsla)Spacex and the social network X.com, among other companies – is using its new government power to fire tens of thousands of federal workers, something that could have a harmful effect on the broader private sector.
Initial unemployment applications this week were shot at 242K, much higher than the 221K expected by economists.
In addition, activists have summoned a general boycott on Friday, asking US consumers to stop all purchases as protest against billionaires and large corporations that increase prices.
The bearish feeling permeates the stock market
While the main US indices are all below where they started the year, there are abundant signs that investors are in a prolonged downward trend.
NVIDIA (NVDA)the rally guide of the stock market rally during the last two years, sold 8.5% on Thursday after reporting a solid quarter.
He Dow Jones Industrial Average (Djia) Now quotes below the always important single mobile average of 100 days (SMA).
The popular Vanguard Information Technology ETF (VGT) He moved below his 200 -day SMA this week, while Microsoft (MSFT) He changed hands near its market collapse price of August 5, 2024.
VGT Daily Shares Graphics
The American Individual Investor Association said on Tuesday that its latest weekly survey of retail merchants showed that bassist respondents increased from 40.5% the week before 60.6%. Bawns are those who expect the market to be lower within six months.
The global fund managers of Bank of America Securities of February (FMS) showed that 89% of the fund managers that they interviewed considered that the US stock market was “overvalued”, the greatest proportion since April 2001.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
