Trump trade tariffs unsettle Wall Street

U.S. stocks end in disarray, techs boosted by Nvidia

Lola Evans
27 Feb 2025, 02:41 GMT+10

Trump trade tariffs unsettle Wall Street

NEW YORK, New York - U.S. stocks were in disarray again on Wednesday with the Standard and Poor's 500 dropping for the fifth day in a row, while the Dow Jones shed more than 200 points. Tech stocks went against the trend with Nvidia gaining more than two percent.

Investors were unsettled again by more pronoubncements from the White House. President Donald Trump said he was not going to impose 25 percent tariffs on trade from the European Union, whiule vowing the proposed tariffs on Canada and Mexico, paused for 30 days, will come into effect.

"Policy uncertainty has certainly filtered its way into a lot of the soft data," Liz Ann Sonders, chief investment strategist at Charles Schwab, told CNBC's "Squawk on the Street" on Wednesday. "That's why you're seeing thing like buying intentions for big ticket items, capex intentions and spending plans really pull down."

Following are the closing quotes Wednesday for the major indices:

The Dow Jones Industrial Average declined by 188.04 points, or 0.43 percent, ending at 43,433.12.

The NASDAQ Composite rose by 48.88 points, or 0.26 percent, finishing at 19,075.26.

The S&P 500 experienced a marginal increase, adding 0.81 points, or 0.01 percent, to close at 5,956.06.

Japanese yen takes off on foreign exchange markets

On Wednesday, global foreign exchange markets experienced notable fluctuations, primarily influenced by concerns over U.S. trade policies.

Here are the latest quotes for Wednesday:

Key Currency Pairs

EUR/USD (Euro/US Dollar): The euro strengthened against the dollar, with the pair trading at 1.0487, an increase of 0.24 percent.
USD/JPY (US Dollar/Japanese Yen): The dollar weakened against the yen, trading at 148.87, a decrease of 0.10 percent.
USD/CAD (US Dollar/Canadian Dollar): The dollar appreciated against the Canadian dollar, with the pair at 1.4335, up by 0.18 percent.
GBP/USD (British Pound/US Dollar): The British pound saw gains against the dollar, trading at 1.2680, an increase of 0.14 percent.
USD/CHF (US Dollar/Swiss Franc): The dollar edged higher against the Swiss franc, with the pair at 0.8939, up by 0.12 percent.
AUD/USD (Australian Dollar/US Dollar): The Australian dollar declined against its U.S. counterpart, trading at 0.6304, a decrease of 0.62 percent.
NZD/USD (New Zealand Dollar/US Dollar): The New Zealand dollar also weakened against the U.S. dollar, with the pair at 0.5696, down by 0.41 percent.

Market Influences

The dollar's depreciation is largely due to weak short-term Treasury yields, influenced by a significant drop in consumer confidence and the possibility of new trade tariffs on Europe. These factors have raised expectations of potential interest rate cuts by the Federal Reserve.

In contrast, the Japanese yen benefited from its status as a safe-haven currency amid the prevailing economic uncertainties. The Canadian dollar faced pressure, reaching a two-week low, as markets anticipated additional tariffs.

Overall, the foreign exchange market remains sensitive to geopolitical developments and economic indicators, with traders closely monitoring upcoming data releases and policy announcements, particularly oiut of the U.S..

Global stock markets see Hong Kong surge, strong rises in UK and Europe

On Wednesday, global stock markets experienced notable movements, influenced by political developments and corporate earnings.

Canadian Markets

S&P/TSX Composite Index: Canada's main stock index, the S&P/TSX Composite, advanced by 124.38 points, or 0.49 percent, to close at 25,328.36.

The Canadian market's upward movement was supported by robust corporate earnings, despite the backdrop of trade uncertainties. Analysts anticipate that while the index is set to reach new record highs by the end of 2025, ongoing global trade tensions could limit gains and potentially trigger market corrections.

UK and European Markets

UK and European shares reached record highs, buoyed by a draft U.S.-Ukraine deal on critical minerals and robust corporate earnings.

In London the FTSE 100 rose 62.79 points, or 0.72 percent, to close the day at 8,731.46.

The pan-European STOXX 600 index hit a new peak, with major indices in Frankfurt, Paris, and London also advancing.

In Germany the DAX rose by 383.84 points, or 1.71 percent, to close at 22,794.11.

France's CAC 40 increased by 92.85 points, or 1.15 percent, ending at 8,143.92.

Asian Markets

In Asia, markets displayed mixed results. Hong Kong's Hang Seng Index surged by 753.91 points, or 3.27 percent, to 23,787.93, leading the region's gains.

Conversely, Japan's Nikkei 225 experienced a decline of 95.42 points, or 0.25 percent, closing at 38,142.37.

In China the Shanghai Stock Exchange Composite Index advanced by 34.17 points, or 1.02 percent, to 3,380.21.

South Korea's KOSPI Composite Index edged up by 10.80 points, or 0.41 percent, reaching 2,641.09.

In Singapore the STI Index saw a slight decrease of 7.82 points, or 0.20 percent, ending at 3,908.05.

Oceania Markets

Australian indices faced modest losses. The S&P/ASX 200 fell by 11.20 points, or 0.14 percent, to 8,240.70, while the All Ordinaries declined by 20.70 points, or 0.24 percent, closing at 8,477.30.

In New Zealand, the S&P/NZX 50 Index advanced by 145.19 points, or 1.18 percent, to 12,452.46.

Other Notable Indices

India's S&P BSE SENSEX: Increased by 147.71 points, or 0.20 percent, to 74,602.12.
Indonesia's IDX Composite: Rose by 19.09 points, or 0.29 percent, to 6,606.18.
Malaysia's FTSE Bursa Malaysia KLCI: Gained 20.68 points, or 1.32 percent, ending at 1,588.71.
Israel's TA-125: Increased by 10.55 points, or 0.42 percent, to 2,542.50.
Egypt's EGX 30 Price Return Index: Slightly decreased by 22.90 points, or 0.07 percent, to 30,632.00.
South Africa's Top 40 USD Net TRI Index: Added 36.98 points, or 0.79 percent, reaching 4,727.76.