From Financial Modeling Prep: 2025-02-05 01:17:40

The U.S. stock market faced volatility with new tariffs announced by former President Donald Trump on Chinese imports, leading to fears of a prolonged trade war. China retaliated with tariffs on U.S. exports, impacting major companies like Apple.

Stock futures slipped following the tariff news, with the S&P 500, Dow Jones, and Nasdaq seeing declines. European markets also faced losses, with the euro dropping below $1.02. Asian markets showed mixed reactions, with the Hang Seng Index initially surging but mainland Chinese stocks dipping.

Apple’s supply chain is under scrutiny in the trade dispute. While the impact on earnings is projected to be minimal, the company has diversified its supply chain to mitigate risks. Energy stocks led market gains, while tech stocks, particularly AI companies, saw varying movements.

Bitcoin fell 3% to $98,750 in response to the trade tensions. Cryptocurrencies may show correlations with equities during uncertainty, but regulatory clarity could shape their independence from traditional assets. Markets await further negotiations between the U.S. and China, with a focus on central bank policies.

The latest U.S.-China tariffs have introduced volatility, impacting global markets. While key sectors like energy and AI show resilience, investor sentiment remains cautious. Monitoring policy decisions and corporate earnings will be crucial in navigating risks and opportunities in the market.



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