General Market News

European markets are expected to open flat to higher on Tuesday as investors assess the impact of U.S. President Donald Trump's new 15% blanket tariff on imports. The European Parliament has suspended the U.S.-EU trade deal agreed last summer in response to the tariff action. Regional stocks closed lower on Monday amid concerns about the new global trading landscape and potential threats to existing trade agreements.

• The U.K.'s FTSE is expected to open unchanged, while Germany's DAX and France's CAC are projected up around 0.25%, and Italy's FTSE MIB up almost 0.3%
• European officials expressed concern over Trump's tariff action, with the European Parliament announcing it has suspended the U.S.-EU trade deal from last summer
• Trump indicated the 15% duty would go into effect immediately and warned of additional levies coming in the next few months, while threatening further tariff increases for countries that 'play games'

U.S. stocks fell sharply on Monday after the Supreme Court struck down President Trump's emergency tariffs in a 6-3 ruling on Friday, ruling he exceeded his authority. Trump immediately responded by announcing new tariffs of 15%, reviving trade uncertainty that had weighed on markets in early 2024. The ruling also raised questions about tariff refunds and the validity of existing bilateral trade deals.

• The Dow Jones Industrial Average dropped 1.7% (over 800 points), while the S&P 500 and Nasdaq fell 1% and 1.1% respectively on Monday amid renewed uncertainty.
• Trump imposed a new 15% global tariff in response to the ruling, which requires Congressional approval to last beyond 150 days, and threatened higher tariffs on countries that 'play games' with the court decision.
• Experts estimate about 90% of struck-down tariffs can be restored through other legal authorities, with effective tariff rates potentially reaching 13-14%, near previous levels before the ruling.

Trading volumes for leveraged funds and options have surged dramatically since the COVID-19 pandemic, with leveraged funds seeing 250% growth from 2020 to 2025 and options volumes more than doubling in the same period. The growth reflects rising demand for speculative instruments as retail traders have become a major force in financial markets, seeking tools to amplify returns and capitalize on market volatility.

• Leveraged and inverse funds reached average daily volumes of 1.41 billion in 2025, growing at a 29% compound annual rate since 2020, compared to 10% for stocks
• Options trading hit 58 million in average daily volume for 2025, up 26% year-over-year with a 16% compound annual growth rate since 2020
• The number of active leveraged funds grew 50% in 2025, the largest annual increase since 2007, with traders using these products to 'buy the dip' after market declines including during April's tariff-driven selloff

ETF manager Algorithmic Investment Models reviewed 2025 market performance, noting that international equities dramatically outperformed U.S. stocks for the first time since 2009, with MSCI ACWI ex-U.S. returning over 30% versus 17% for the S&P 500. The year was characterized by extreme high-beta stock outperformance driven by AI concentration, with low-volatility strategies underperforming by historic margins, creating what the firm calls 'A Gambler's Delight' environment heading into 2026.

• The S&P 500 Low Volatility Index underperformed the broader market by 14% while the High Beta Index nearly doubled market returns, marking a historic anomaly as traditionally defensive strategies failed.
• Equities now constitute a higher percentage of individual net worth than real estate for only the second time in history (first was 1999), raising concerns about wealth effect dependency and market vulnerability.
• AI return on investment skepticism is emerging as investors punish companies with massive capital outlays, with new portfolio themes including biotech, clean energy, and Japan as international momentum builds.

The 2026 IPO landscape features anticipated public listings from major companies across AI, aerospace, design, and consumer sectors. Three standout prospects include Anthropic (AI/LLM company with $14 billion ARR), Discord (communications platform with 656 million users), and Plaid (fintech intermediary used by 150 million consumers globally). These companies represent diverse sectors beyond 2025's fintech-dominated IPO market.

• Anthropic's annual recurring revenue surged from $1 billion in late 2024 to $14 billion in early 2026, driven by its Claude LLM platform
• Discord has grown from 11 million users in 2016 to 656 million currently, with 37% of Americans ages 18-34 as active users; seeking IPO at $15 billion valuation
• Plaid raised $575 million in April 2025 at a $6.1 billion valuation and reported record revenue with positive operating margins, connecting over 150 million global consumers' financial accounts

The U.S. Securities and Exchange Commission granted WisdomTree a special exemption to allow intraday trading of its tokenized Treasury Money Market Digital Fund, marking the first such approval for a tokenized mutual fund. The exemption removes the standard requirement that mutual fund transactions occur only at end-of-day prices. This development represents a significant step in expanding blockchain-based tokenization of capital markets.

• The SEC exemption allows retail investors to trade the tokenized money market fund throughout the day on blockchain, rather than being restricted to end-of-day pricing required for traditional mutual funds
• WisdomTree's head of digital assets called this the first exemption of its kind for any tokenized mutual fund, signaling growing regulatory acceptance of blockchain-based securities
• The approval comes amid increasing interest in tokenized securities as crypto companies seek to benefit from Washington's increasingly favorable regulatory stance toward digital assets

President Trump's new 15% universal tariff boosted gold and silver prices, lifting mining stocks that had declined after recent earnings reports. Major miners including Barrick, Agnico-Eagle, Kinross Gold, and Newmont saw gains as investors sought safe-haven assets amid tariff uncertainty. The Supreme Court struck down certain tariff powers but the administration pledged to use alternative legal methods to maintain tariff policies.

• Gold rose 3% and silver gained 7% on Monday, with mining stocks following: Kinross Gold up 6%, Agnico-Eagle up 5%, Barrick Mining up 3%, and Newmont up 1.5%
• Mining companies reported strong earnings with major growth: Kinross EPS rose over 200%, Barrick and Agnico-Eagle saw profit increases of 126% and 113% respectively, driven by historic gold price run-ups
• Trump implemented a temporary 15% universal tariff for 150 days after the Supreme Court ruled certain earlier tariffs unconstitutional, requiring Congressional approval for extensions

The Supreme Court ruled 6-3 that President Trump exceeded his authority by using IEEPA to impose sweeping global tariffs, striking down roughly $1.5 trillion in planned tariff revenue. Trump immediately responded by announcing a 15% blanket tariff under Section 122 authority, signaling continued trade pressure through alternative legal channels.

• The ruling shifts tariff policy from potential sudden shocks to structured processes requiring investigations under Section 232 or 301, reducing uncertainty but not eliminating tariff risk entirely
• Goldman Sachs estimates the net tariff reduction is modest, dropping effective rates from just over 10 percentage points to about 9%, meaning significant trade pressure remains
• Two major uncertainties persist: whether companies will receive billions in refunds for already-paid tariffs (likely taking 2-5 years to resolve) and whether Section 122 tariffs can provide a durable long-term framework

The Supreme Court struck down many of President Trump's tariffs on Friday, dealing a major blow to his trade agenda and creating political tension within the Republican Party. Congressional Republicans face difficult votes on tariff extensions ahead of midterm elections, with polls showing tariffs are unpopular among voters. Democrats are vowing to block attempts to extend Trump's tariff policies, which they link to rising consumer prices.

• Trump's new tariffs under Section 122 cap rates at 15% and require congressional authorization after 150 days, forcing a potentially difficult election-year vote for Republicans
• Six Republicans joined Democrats to vote against Trump's 35% Canada tariff earlier this month, with Rep. Don Bacon noting opposition is likely '5-6 times higher' without party pressure
• Studies show Trump's tariffs amount to a $1,000 average tax increase for American families in 2025, with U.S. consumers bearing nearly 90% of the tariff burden

UK businesses face uncertainty and higher costs as US President Trump's 15% global tariff takes effect Tuesday, following a Supreme Court ruling that struck down his original 'Liberation Day' tariffs. The move threatens a previously agreed UK-US deal that had secured a 10% rate, leaving exporters unclear whether they face an additional 5% hike. Governments worldwide, including the EU which has paused ratification of its US trade deal, are scrambling for clarity amid the evolving trade policy.

• UK exporters now face a 15% tariff starting Tuesday morning (5am GMT), up from the 10% rate agreed under a previous UK-US deal, with officials warning businesses are 'staring down the barrel at higher costs'
• The EU has put ratification of its US trade deal on hold, citing the need for 'clarity and legal certainty' as Trump warned countries that 'play games' with the Supreme Court decision will face 'much higher tariffs'
• The tariffs operate under US section 122 law, limiting such action to 150 days without Congressional approval, while the UK government says 'nothing is off the table' regarding potential retaliatory measures

Money market fund assets currently stand at $7.7 trillion, representing roughly one-tenth of the U.S. stock market size, following three consecutive years of substantial growth. New 2026 tax incentives and potential home equity extraction could further increase consumer cash holdings. As uncertainty around Fed policy diminishes, this cash stockpile could shift into equities and consumer spending, potentially boosting economic growth and stock prices.

• Money market funds grew by $860 billion in the most recent year, following increases of $920 billion in 2024 and $1.2 trillion in 2023, driven by positive real yields
• New 2026 tax incentives including higher standard deductions and increased SALT caps could add more money to consumer wallets
• Homeowners hold $17.1 trillion in home equity as of Q3 2025, which could be tapped if mortgage rates fall and home prices continue rising

US stocks fell Monday as President Trump raised a global tariff to 15% following a Supreme Court ruling that struck down a key part of his tariff policy, creating fresh uncertainty for investors. The Dow dropped 800 points (1.6%), while the S&P 500 and Nasdaq fell over 1%, though the decline was milder than April's 'Liberation Day' panic. AI and airline stocks were particularly hard hit amid sector-specific concerns.

• Trump's 15% temporary surcharge under Section 122 will remain until late July after the Supreme Court wiped out emergency-powers tariffs, with the EU pausing its Washington trade deal approval in response
• AI-related stocks tumbled as CrowdStrike dropped 8.4% and AppLovin fell 8.2%, with investors worried about competition and questioning whether Big Tech's massive chip spending will yield profits ahead of Nvidia's Wednesday earnings
• Goldman Sachs analysts downplayed economic fears, noting that 'the bulk of the passthrough' from tariff costs to consumer prices had already occurred and forecasts on inflation and growth remain 'little changed'

Market volatility in 2025, including a 20% S&P 500 drawdown followed by a 45% rally, has highlighted critical risks for retirees withdrawing from portfolios. Sequence-of-returns risk means identical portfolios can produce vastly different outcomes based on when withdrawals occur relative to market gains and losses. Financial advisors increasingly recommend flexible withdrawal strategies and cash buffers rather than rigid rules like the traditional 4% withdrawal rate.

• Sequence-of-returns risk causes identical portfolios with the same average returns to produce different outcomes based solely on the timing of gains and losses during withdrawal periods
• The traditional 4% withdrawal rule faces pressure during volatile markets, as withdrawing a fixed percentage during a 20% drawdown takes a disproportionately larger share of remaining assets
• A cash buffer covering two years of living expenses allows retirees to avoid selling equity positions during downturns, separating income decisions from market timing

Fed Governor Christopher Waller stated that US payroll employment likely declined in 2025, marking only the third time since 1945 that jobs fell outside of a recession. Official data showing 15,000 new jobs per month contained 'upward bias' and will likely be revised downward, indicating actual job losses for the year.

• Bureau of Labor Statistics data showed job creation averaged just 15,000 positions per month in 2025, but Waller expects further downward revisions confirming negative job growth
• Involuntary part-time workers totaled 4.9 million in January, up 410,000 from a year earlier, as employers cut hours rather than jobs
• Research shows 60% of Americans now earn primary income outside fixed salaries, with 40% relying on side jobs, creating income volatility that affects bill-pay timing and credit performance

The European Parliament postponed for a second time a vote on the EU-US trade deal after President Trump imposed a new blanket 15% global tariff. The delay creates uncertainty about whether Trump's new tariff supersedes last year's agreement struck in Turnberry, Scotland, which included reduced duties on EU and US goods. EU lawmakers will reconvene on March 4 to assess US commitment to the deal.

• Trump's new 15% tariff could stack on top of existing 'most-favored-nation' duties, potentially raising tariffs on some cheeses to around 30% and affecting 7-8% of EU products above previously agreed rates
• The original deal set a 15% US tariff on most EU goods with zero tariffs on products like aircraft parts, while the EU committed to removing import duties on many US goods including lobsters
• EU lawmakers had already halted work on the deal last month and many consider it lopsided, though they were willing to accept it with conditions like an 18-month sunset clause

Stock markets fell on Monday after Donald Trump announced he would impose temporary 15% tariffs on all US imports despite a Supreme Court ruling that his previous tariffs overstepped legal authority. The move has sparked investor uncertainty and faces growing domestic opposition, with 60% of Americans backing the court's decision to strike down Trump's original tariff regime.

• Trump invoked a never-before-used section of the Trade Act of 1974 to implement the 15% temporary tariffs after the Supreme Court ruled his emergency measures illegal
• Polling shows 63% of registered voters disapprove of Trump's tariff handling, with most Americans reporting increased prices and even Republicans four times more likely to say tariffs raised costs than lowered them
• Trump threatened countries attempting to 'play games' with the ruling would face 'much higher' tariffs, raising concerns among Republicans ahead of November midterm elections

President Trump announced a new 15% global tariff following a Supreme Court ruling on his broader tariff policies, creating market uncertainty across multiple sectors. While some retailers and emerging markets may benefit from reduced rates compared to earlier levies, domestic lumber and packaging companies face pressure from cheaper imports. Many existing tariffs under Section 232 remain unaffected, leaving steel, aluminum, and automotive sectors without relief.

• Retailers like Best Buy, Nike, Ralph Lauren, and Target expected to benefit as new tariffs are 4% lower than earlier rates, particularly for consumer electronics, toys, and sports equipment
• Domestic packaging and lumber companies including Smurfit WestRock (down 7%) and International Paper (down 6%) face competitive pressure as their pricing advantage over imports diminishes
• Emerging markets, especially China, stand to benefit with tariff rates expected to drop to 24-27% from 32%, while Southeast Asia and India may see reductions of 4-5% and to 14% respectively

T. Rowe Price research suggests that active management strategies for core portfolio holdings can generate meaningful excess returns over passive index funds. The firm's analysis shows that outperformance of just 25-50 basis points annually over 40 years could add two to five years of retirement spending. This challenges the dominance of passive index tracking as the primary building block for diversified portfolios.

• Generating 0.25% in annual excess returns over 40 years could provide an additional two years of retirement spending; 0.50% outperformance could add five years
• T. Rowe Price's active core strategies target 50-100 basis points in tracking error, using a dual approach combining fundamental equity research with quantitative analysis to exploit market inefficiencies
• The strategy avoids concentrated bets, instead using smaller overweight and underweight positions across a broad universe of securities while controlling for unintended exposures to thematic stock groupings

Markets enter a turbulent week focused on President Trump's announcement of new 15% global tariffs following a Supreme Court ruling that struck down prior tariff measures. Key corporate earnings, particularly Nvidia's February 25 results, and economic data including Friday's US Producer Price Index will also drive sentiment. Multiple Federal Reserve officials are scheduled to speak, providing insight into policy views amid trade uncertainty.

• Trump invoked Section 122 of the Trade Act to implement 15% global tariffs for 150 days without Congressional approval, raising questions about exemptions, refunds, and fiscal impact
• Nvidia reports quarterly results February 25 after market close, with analysts expecting strong revenue and income growth driven by AI demand
• Several Fed officials including Waller, Goolsbee, Collins, Bostic, and Barkin will speak this week, while US PPI data releases Friday alongside Trump's State of the Union address on Tuesday

All three major U.S. stock indices fell below their 50-day moving averages on Monday, February 23, 2026, signaling broad selling pressure across markets. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average each face critical support levels after recent rallies failed. This synchronized weakness suggests a potential shift from equities to cash rather than mere sector rotation.

• The S&P 500 was rejected at the 61.8% Fibonacci level of 6915.65 and fell below its 50-day MA at 6986.68, with key support now at the 6845-6829 retracement zone.
• The Nasdaq failed to break above the major 50% level at 22959.14 and could test support at 22602-22521, with the 200-day MA at 21903.72 becoming relevant if selling intensifies.
• The Dow crossed below its 50-day MA at 49027.98 for the first time since November 25, ending a rally that produced record highs before peaking at 50512.79 on February 10.