Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: US stocks surged on Friday after a week of volatility amid heightened geopolitical tensions.
What happened: Despite Friday’s rally, the three largest US stock indices recorded losses for the week and the month.
Investors flocked to undervalued stocks on Friday, even as the talks between the US and Ukraine collapsed.
Why it matters: US stocks remained under pressure through February on fears of President Donald Trump’s policies triggering inflation in the country. The US equity markets continued to head south in early trading on Friday, after Trump said that tariffs on Canada and Mexico would proceed as planned and come into effect on March 4.
Trump added that China, on which the US had already levied 10% tariffs, would be slapped with even higher tariffs.
The meeting between Donald Trump and Ukrainian President Volodymyr Zelensky at the Oval Office turned into a tense showdown. The mineral deal between the two countries now seems in jeopardy.
Market sentiment was also impacted by the US reporting higher-than-expected initial jobless claims. The Labor Department reported on Thursday that initial jobless claims had risen by 22,000 to 242,000 in the week ended February 22. The figure came in much higher than analyst estimates of 225,000.
Market sentiment turned positive after the US reported on Friday that the PCE (personal consumption expenditures) price index eased in January. The index, which is the Federal Reserve’s preferred inflation gauge, rose 2.5% year-on-year in January, slowing from 2.6% in the previous month. The latest figure represented the first slowdown in four months.
Traders also bought US stocks after several analysts mentioned that the selloff through February had created attractive buying opportunities.
Nvidia’s stock jumped 3.97% to $124.92, while shares of Apple, Amazon and Microsoft rose by more than 1%. Among the other top gainers were financial stocks, with Goldman Sachs, American Express and JPMorgan Chase climbing more than 2%.
The Dow Jones index added 1.39% to close at 43,840.91 on Friday. The S&P 500 rose 1.59% to 5,954.50, while Nasdaq 100 climbed 1.63% to settle at 18,847.28. The Dow Jones index, S&P 500 and Nasdaq 100 ended February lower by 1.58%, 1.42%, and 3.97%, respectively.
What to watch: Investors will continue monitoring announcements by the Trump administration.
Markets will also look out for any comments from the Fed regarding a possible interest rate cut at the next policy meeting.
Context: Bitcoin, Ethereum, and other major cryptos rose sharply on Sunday, following patronage from the US President.
Details: US President Donald Trump said on Sunday that he had directed the Presidential Working Group to move forward on a Crypto Strategic Reserve.
Trump had branded himself as a pro-crypto candidate during the US presidential campaign. However, the lack of any comments from him after entering the White House had sent cryptos sharply lower.
On Sunday, the long-awaited announcement was made by the US President. He announced plans to include not just Bitcoin, but also Ethereum, XRP, Solana, and Cardano in the country’s strategic reserve. “I will make sure the U.S. is the Crypto Capital of the World,” Trump said.
Bitcoin jumped more than 10.48% to $94,144 immediately after the announcement. As of Sunday night, the world’s largest cryptocurrency was trading at $94,136, while Ethereum had climbed 12.86% to $2,515, XRP was up 32.77% at $2.92, Solana had risen 24.25% to $177.08, and Cardano had skyrocketed 59.20% to $1.06.
What to watch: Investors will monitor the purchase of cryptos by the US government.
Volatility in the global financial markets and concerns over a trade war between the US and China will also remain in focus.
Other Markets: European trading indices closed slightly higher on Friday, with the Stoxx 600, FTSE 100, and CAC 40 up by 0.01%, 0.61% and 0.11%, respectively, while the DAX settled trading flat.
During the London Summit, in which the Ukrainian President met leaders of Europe, the UK announced to accelerate $2.8 billion in loans to help the country in its war with Russia. The news sent the RUB/USD pair lower in forex trading this morning.
Australia’s S&P Global Manufacturing PMI came in at 50.4 in February, below a preliminary reading of 50.6. The figure being better than January’s 50.2 lent support to the AUD/USD forex pair.
Japan’s Au Jibun Bank Manufacturing PMI stood at 49.0 in February, slightly above a preliminary reading of 48.9. The latest result being an improvement from January’s 10-month low of 48.7 sent the JPY/USD pair higher in forex trading this morning.
China’s Caixin General Manufacturing PMI rose to 50.8 in February, from 50.1 in the previous month. The figure surpassing market expectations of 50.3 lent support to the CNY/USD forex pair.
Taiwan’s S&P Global Manufacturing PMI improved to 51.5 in February, from 51.1 in the previous month. This being the 11th consecutive month of expansion in the manufacturing sector sent the TWD/USD pair higher in forex trading this morning.
Austria’s GPD growth and inflation rate (12:00 UAE Time), Hungary’s manufacturing PMI (12:00 UAE Time), Switzerland’s manufacturing PMI (12:30 UAE Time), Hong Kong’s retail sales (12:30 UAE Time), Italy’s manufacturing PMI (12:45 UAE Time), France’s manufacturing PMI (12:50 UAE Time), Germany’s manufacturing PMI (12:55 UAE Time), Eurozone’s manufacturing PMI (13:00 UAE Time), South Africa’s manufacturing PMI (13:00 UAE Time), Italy’s GDP growth (13:00 UAE Time), UK’s BoE consumer credit, mortgage approvals, mortgage lending and manufacturing PMI (13:30 UAE Time), Eurozone’s inflation rate (12:00 UAE Time), Mexico’s Foreign Exchange Reserves (15:00 UAE Time), Portugal’s industrial production, retail sales and unemployment rate (15:00 UAE Time), Mexico’s business confidence (16:00 UAE Time), Brazil’s manufacturing PMI (17:00 UAE Time), Singapore’s manufacturing PMI (17:00 UAE Time), Canada’s manufacturing PMI (18:30 UAE Time), US S&P manufacturing PMI (18:45 UAE Time), Mexico’s manufacturing PMI (19:00 UAE Time), and US ISM manufacturing PMI (19:00 UAE Time).
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
