Market Performance and Investor Sentiment - The U.S. stock market experienced a significant one-session gain on February 6, with the S&P 500 recording its largest increase since May 2025, yet Goldman Sachs cautioned that investors are not fully secure [1] - The first week of February saw a drop that prompted trend-following algorithmic funds to continue selling equities, with potential sell-offs of approximately $33 billion if the downtrend resumes, and about $15.4 billion in a sideways market [3] Volatility and Market Risks - Goldman Sachs highlighted that thin liquidity and a predominance of net short positions could exacerbate market volatility and lead to substantial losses in the second week of February [4] - The January U.S. jobs report indicated a risk of a significant stock market sell-off, with 108,435 job cuts reported, marking a 118% increase compared to January 2025, the highest number of layoffs for the start of a year since 2009 [5][6] Impact of AI and Job Cuts - The job cuts in January are attributed to pressures from the AI boom and global trade disruptions, with major tech companies like Amazon, UPS, and Target implementing significant layoffs [6][7] - The AI sector's need to generate trillions in revenue by 2030 for investments to be viable is seen as unrealistic, with many recent investment agreements appearing to have faltered [9][10] Trade War and Economic Strain - President Trump's tariff war has led to instability, with reports indicating that 96% of added costs have been absorbed by American consumers, affecting their economic contributions [12] - The trade war's volatility may worsen if the U.S. Supreme Court rules against the tariffs, which could lead to a collapse of the policy [13]

New Year’s resolutions are often about being more responsible with your time, exercising, or working toward a larger goal. The value of keeping such a resolution comes when you can look back and see how far you’ve come in accomplishing what you set out to do. Last year, Republican lawmakers set their sights on major tax legislation, and now, the results of that work will start to show up—including larger refunds for millions of taxpayers. But that doesn’t mean Congress should stop its tax reform work, esp ...

It is understandable now that traders are cautious. The Bitcoin USD price is not trending and is all over the place. There it appears to be no refuge. At press time, the Bitcoin USD price is under pressure and yet to break above the $90,000 resistance. If anything, given the current state of price action, the odds of the digital gold rallying are lower than those of a price slump. This shows how the BTC USD price has been printing in the last few trading days. Since November 21, BTC USDT has been in a r ...

Core Viewpoint - Donald Trump has threatened to impose a 100% tariff on Canadian goods if Canada proceeds with its trade deal with China, which includes lowering tariffs on Chinese electric vehicles in exchange for reduced import taxes on Canadian agricultural products [1][3]. Group 1: Trade Relations - Canada has negotiated a trade agreement with China that aims to lower tariffs on Chinese electric vehicles while seeking lower import taxes on Canadian farm products [1]. - Trump expressed that if Canada acts as a "Drop Off Port" for Chinese goods, it would face severe consequences, including a 100% tariff on all Canadian goods entering the U.S. [2][3]. - The Canada-US-Mexico Agreement has provided Canada with some protection against existing tariffs, but this agreement is due for review this year [4]. Group 2: Political Dynamics - The relationship between Trump and Canadian Prime Minister Mark Carney has deteriorated, with Trump referring to Carney as "Governor Carney," a nickname he previously used for Justin Trudeau [3]. - Carney has called for a new alliance to counter American and Chinese aggression during a speech at Davos, while Trump emphasized the importance of the U.S. to Canada's existence [7]. - Trump's revocation of Carney's invitation to join his "Board of Peace" reflects the ongoing tensions and shifting political dynamics between the two leaders [10].

There’s been an ongoing general diversification away from US assets, especially by global central banks, according to Ray Dalio, the founder of hedge fund firm Bridgewater Associates. “When you look at gold being up 67%, it’s not a precious metal that goes up 60%,” Dalio told Bloomberg Television’s Francine Lacqua in Davos on Thursday. “It was bought by central banks particularly, but others, and in order to diversify fiat currencies, not just dollars.” Most Read from Bloomberg Weighing in on global te ...

Group 1 - About 81% of S&P 500 companies have beaten fourth-quarter profit expectations, but their shares have underperformed the benchmark by an average of 1.1 percentage points, marking the worst relative performance since 2017 [1] - Companies like 3M Co. and State Street Corp. saw significant share price declines despite beating profit estimates, indicating that investors are more focused on future guidance rather than past performance [2] - The current market environment is characterized by high valuations, with the S&P 500 trading at about 22 times forward earnings, above the 10-year average of 19, leading to increased scrutiny on corporate earnings and forecasts [5] Group 2 - Investors are becoming more discerning, particularly in light of geopolitical concerns such as potential trade wars, which have contributed to a selloff in global equity markets [4] - Companies that missed earnings estimates this quarter underperformed the S&P 500 by an average of 3 percentage points on the day of reporting, highlighting the importance of meeting or exceeding expectations [5] - Analysts have been cutting profit estimates ahead of the reporting season, emphasizing the high stakes for corporate earnings as US stocks have reached record highs [3]

Market Overview - Risk-off sentiment intensified, leading to significant losses in U.S. equities, with the S&P 500 and Nasdaq 100 both declining around 2%, marking their worst sessions in over three months [1] - The so-called Magnificent Seven stocks collectively lost approximately $700 billion in market capitalization, with Nvidia and Apple experiencing the largest declines [2] Company-Specific Losses - Nvidia Corp. lost $174.90 billion, a decrease of 3.86% [3] - Apple Inc. saw a market cap loss of $172.92 billion, down 4.58% [3] - Other notable losses included Alphabet Inc. (-$103.28 billion, -2.59%), Amazon.com Inc. (-$90.24 billion, -3.53%), and Tesla Inc. (-$60.54 billion, -4.16%) [3] Precious Metals and Safe-Haven Assets - Gold prices surged by 1.9% to $4,760 per ounce, reaching record highs as investors sought safe-haven assets amid rising geopolitical and trade risks [4] - The shift towards gold indicates a growing belief that U.S. actions regarding tariffs may be imminent [5] Economic Implications of Trade Conflicts - Economists warn that a potential escalation into a transatlantic trade conflict could significantly impact economic growth, with estimates suggesting a 1% reduction in U.S. GDP if a 25% tariff is imposed on European countries [6] - Global GDP growth could slow to approximately 2.6%, below the recent 2.8%-2.9% range, marking the weakest pace since 2009, excluding the pandemic year [7] Treasury Yields and Market Dynamics - U.S. Treasuries did not provide the expected safe-haven support, with rising yields pressuring bond prices even as equities fell [8] - Factors contributing to higher Treasury yields include rising deficits, escalating tariff threats, geopolitical tensions, and concerns over Federal Reserve independence [9]

US stocks got clobbered on Tuesday in Wall Street's worst day since October, returning to the kind of tariff-fueled routs that plagued markets last spring after President Trump reignited trade-war tensions with Europe over his ambitions to take control of Greenland. The Dow Jones Industrial Average (^DJI) sank 1.8%, or over 800 points. The S&P 500 (^GSPC) fell by about 2%, while the Nasdaq Composite (^IXIC) retreated over 2.4% as investors fled riskier bets on the heels of a losing week for Wall Street st ...

President Donald Trump's threat to place new tariffs on some European countries resisting his effort to obtain Greenland has put trade fights back on the front burner and rattled global financial markets. ...

Just days after mortgage rates hit a three-year low, sparking a near-instant surge in applications, fresh trade tensions are threatening to undo that progress. Rates on a 30-year mortgage jumped 14 basis points to an average of 6.21% on Tuesday morning, according to Mortgage News Daily, following new escalations in the standoff between President Trump and European leaders over the future of Greenland. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms ...