Last Updated: 4:08 PM EST
Stock indices finished today’s trading session in the red after President Trump confirmed that 25% Tariffs on Canada and Mexico will proceed on March 4. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 2.2%, 1.76%, and 1.48%, respectively.
Separately, the U.S. manufacturing sector showed signs of strength in February, with the S&P Global U.S. Manufacturing Purchasing Managers’ Index rising to 52.7 from 51.2 in January. This beat expectations and was the best rate of growth since June 2022 thanks to a surge in new orders. However, experts warn that this improvement may be short-lived, as companies are stockpiling inventory in order to avoid price hikes and supply issues that may be caused by tariffs.
On the other hand, the U.S. construction sector experienced a slowdown in January, as spending slipped 0.2% to $2,192.5 billion on a seasonally adjusted annual rate. This was weaker than expected and was a decline from the 0.5% growth rate in December. In addition, residential construction fell 0.4%, while nonresidential construction remained flat. Public construction, however, saw a slight increase of 0.1%. It is worth noting that the slowdown may be partly attributed to severe winter weather in January.
Overall, the mixed signals from both the manufacturing and construction sectors demonstrate the nuanced nature of the U.S. economy. While the manufacturing sector will be looking to overcome tariffs and inventory challenges, the construction sector looks to manage factors such as weather, interest rates, and government spending.
First Published: 3:46 AM EST
U.S. stock futures were slightly lower on early Monday as market sentiment remained cautious due to ongoing uncertainty about President Trump’s planned tariffs on key trading partners. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.01%, 0.11%, and 0.03%, respectively, at 3:44 a.m. EST, March 3.
Over the weekend, Commerce Secretary Howard Lutnick’s comments regarding tariffs on Mexico and Canada offered some hope. He suggested these tariffs might be “fluid” and potentially lower than the initially proposed 25%. However, the 10% tariff on Chinese imports is reportedly confirmed.
It must be noted that the concerns about the Trump administration’s trade policy have contributed to recent market volatility, with all three major indices witnessing losses in February. The Nasdaq Composite (NDAQ) suffered a major decline of 4%, marking its worst month since April 2024. Further, the Dow Jones and the S&P 500 were down 1.6% and 1.4%, respectively.
Looking ahead, traders are looking forward to President Donald Trump’s first address to a joint session of Congress since his re-election, on Tuesday. Also, tariffs against products from Canada, Mexico, and China are set to go into effect tomorrow. Moreover, the February’s Jobs report, due for release on Friday, will provide insights into the health of the U.S. labor market.
Today, investors will assess the S&P Manufacturing Purchasing Managers’ Index (PMI) and ISM Manufacturing PMI reports for February.
Further, earnings reports are expected from Target (TGT), Marvell (MRVL), Rigetti Computing (RGTI), Zscaler (ZS), Costco (COST), Broadcom (AVGO), Macy’s (M), BigBear.ai (BBAI), and Kroger (KR) among others this week. Particularly, Plug Power (PLUG), Okta (OKTA), and AST SpaceMobile (ASTS) will report results today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.242%. Simultaneously, WTI crude oil futures are trending higher, hovering near $69.82 per barrel as of the last check.
Elsewhere, European indices opened higher on Monday as traders awaited key economic reports this week, such as preliminary Eurozone Inflation data and the European Central Bank’s interest rate decision.
Asia-Pacific Markets Ended Higher on Monday
Most of the Asia-Pacific indices were in the green today as investors looked forward to clarity on Trump’s plans to impose tariffs on key trading partners this week.
Notably, Hong Kong’s Hang Seng Index was up 0.29%. Further, Japan’s Nikkei and Topix indices closed higher by 1.7% and 1.77%, respectively. At the same time, China’s Shenzhen Component index gained 0.36%, while the Shanghai Composite index was down 0.12%, respectively.
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