From Nasdaq: 2025-03-07 13:00:00

Wall Street is facing a gloomy start to the year as trade tensions escalate. President Trump imposed 10% tariffs on Chinese imports, raising the total tariff rate to 20%. Additionally, a 25% tariff on imports from Canada and Mexico was implemented. However, automakers were granted a one-month exemption from tariffs.

Economic data presents a mixed picture, with the PCE index cooling to 2.6% but consumer spending falling 0.2% in January. The University of Michigan consumer sentiment index dropped to 64.7 in February, reflecting inflation concerns. U.S. existing home sales also decreased in January. These factors are raising concerns about slowing economic momentum.

The tech world may be in for a sea-change with the emergence of DeepSeek artificial intelligence. Chinese startup DeepSeek introduced an AI model that costs significantly less than others. This has triggered doubts about the returns on capital investments by U.S. tech majors. As a result, the Roundhill Magnificent Seven ETF has underperformed.

European and gold ETFs are gaining attention due to shifting earnings momentum and geopolitical tensions. The iShares MSCI Spain ETF and SPDR Gold Shares are in focus as earnings estimates for Europe rise while gold prices surge. These ETFs are seen as safe havens amid market uncertainties and geopolitical risks.

China tech stocks and ETFs are expected to benefit from the DeepSeek Buzz and policy easing. Alibaba experienced a stock surge after introducing an AI system that rivals DeepSeek. U.S. value stocks are also under scrutiny as concerns about trade tensions and the economy persist. The SPDR Portfolio S&P 500 Value ETF is seen as a safer exposure option.



Read more at Nasdaq: 5 ETF Picks for March