- Bond Yields Climb on Powell’s Wait-and-See Signals: Markets Wrap
Treasury yields rose and stocks fluctuated as Federal Reserve Chair Jerome Powell reiterated the central bank
is in no rush to cut rates. Bonds fell across the curve, with money markets continuing to fully price in just one
rate cut by the Fed this year. The S&P 500 remained stuck in a tight range. Most big techs dropped, though
Meta Platforms Inc. climbed for a 17th consecutive day. Intel Corp. and GlobalFoundries Inc. surged as Vice
President JD Vance said the US will make sure the most sophisticated artificial-intelligence hardware is made
domestically. Just a day ahead of a key inflation reading, Powell signaled that officials will be patient before
lowering borrowing costs further as the economy remains strong. He also told Congress it is unwise to
speculate on tariff policy at this time. Powell is due to testify before the House Financial Services Committee
on Wednesday. - S&P 500 ekes out gain even as Powell urges caution on rates, tariffs weigh on markets
The S&P 500 posted a narrow gain on Tuesday as investors digested cautious commentary from Federal
Reserve Chair Jerome Powell on interest rates. Concerns remain over the direction of the economy amid U.S.
tariffs and the possible escalation of a global trade war. The S&P 500 added 0.03% to end at 6,068.50, while
the Nasdaq Composite lost 0.36% to close at 19,643.86. The Dow Jones Industrial Average gained 123.24
points, or 0.28%, to 44,593.65. - Oil climbs on supply worries, Trump tariffs check gains
Oil prices extended gains on Tuesday amid concerns over Russian and Iranian oil supply and sanctions threats
despite worries that escalating trade tariffs could dampen global economic growth. Brent crude futures were
up $1.11, or 1.46%, at $76.98 a barrel, while U.S. West Texas Intermediate crude rose 99 cents or 1.37% to
$73.31. Both contracts posted gains of near 2% in the prior session after three weekly losses in a row.
“With the U.S. bearing down on Iranian exports and sanctions still biting into Russian flows, Asian crude
grades remain firm and underpin the rally from yesterday,” PVM oil analyst John Evans said. Shipping of
Russian oil to China and India, the world’s major crude oil importers, has been significantly disrupted by U.S.
sanctions last month targeting tankers, producers and insurers. Adding to supply jitters are U.S. sanctions on
networks shipping Iranian oil to China after President Donald Trump restored his “maximum pressure” on
Iranian oil exports last week. But countering the price gains was the latest tariff by Trump which could
dampen global growth and energy demand. Trump on Monday substantially raised tariffs on steel and
aluminium imports to the U.S. to 25% “without exceptions or exemptions” to aid the struggling industries
that could increase the risk of a multi-front trade war. - Gold takes a breather after record run on trade war fears
Gold prices slipped on Tuesday as investors booked profits following a record high, yet remained bullish amid
fears of a global trade war spurred by U.S. President Donald Trump’s new tariffs. Spot gold fell 0.1% to
$2,904.87 per ounce after hitting a peak of $2,942.70 earlier in the session. U.S. gold futures settled 0.1%
lower at $2,932.60. “Just seeing some profit-taking from the shorter-term futures traders… the market’s
becoming a bit overextended and just due for some downside corrective pressure and some chart
consolidation,” said Jim Wyckoff, a senior market analyst at Kitco Metals. - Japan seeks exemption from U.S. steel, aluminum tariffs
Japan on Wednesday requested that its steel and aluminum products be exempt from 25 percent tariffs
imposed by U.S. President Donald Trump, who vowed to put the penalties into effect next month, the
government’s top spokesman said. Chief Cabinet Secretary Yoshimasa Hayashi said the government formally
requested the exemption through the Japanese Embassy in the United States. Prime Minister Shigeru Ishiba,
who met with Trump last week, said in parliament, “We will take necessary measures, including lobbying the
United States for an exemption, while closely monitoring any possible impact on the Japanese economy.” The
tariffs are due to take effect on March 12, according to the White House. It was Trump’s first sector-based
tariff order since taking office last month. In 2018, during his first presidency, Trump imposed tariffs of 25
percent on steel and 10 percent on aluminum, citing national security concerns. But several U.S. trading
partners, including Japan, were granted duty-free quotas under the administration of Joe Biden. Japan’s
quota was set at 1.25 million tons per year starting in April 2022, with any shipments exceeding that amount
subject to tariffs. But Trump on Monday signed proclamations removing the exceptions, prompting a vow of
retaliation from the European Union. - US core inflation seen rising at firm pace in January
Inflation likely remained stubborn last month based on economists’ estimates, backing the Federal Reserve’s
patient approach to lowering borrowing costs. The so-called core consumer price index that excludes food
and energy is seen rising 0.3% in January from December in the Bureau of Labor Statistics report due
Wednesday. From a year earlier, core CPI likely increased 3.1%, according to the median forecast in a
Bloomberg survey. January would mark the fifth month in the last six that the core CPI has advanced 0.3%,
consistent with stalled progress on reducing inflation. Fed Chair Jerome Powell reiterated Tuesday that the
central bank doesn’t need to rush to adjust interest rates. - Fed Chair Powell says ‘we do not need to be in a hurry’ to cut rates
Federal Reserve Chair Jerome Powell is at Capitol Hill today and tomorrow for his twice-yearly testimony
before Congress. On Tuesday, Powell appeared before the Senate Committee on Banking, Housing, and
Urban Affairs. He will appear before the House Financial Services Committee on Wednesday. In his prepared
testimony Tuesday, Powell reiterated that the Federal Reserve does “not need to be in a hurry to adjust our
policy stance.” He noted that the economy is “strong overall and has made significant progress” toward the
Fed’s goals over the past two years, while the labor market conditions have cooled from their formerly
overheated state and inflation “has moved much closer to our 2 percent longer-run goal.” “We are attentive
to the risks on both sides of our mandate,” stated Powell. In the remarks, he explained that reducing policy
restraint too fast or too much could “hinder progress on inflation,” while reducing policy restraint too slowly
or too little could “unduly weaken economic activity and employment.” As a result, Powell expressed the
need for the FOMC to continue to assess incoming data, the evolving outlook, and the balance of risks.
Powell concluded by emphasizing that the Fed will do everything it can to “achieve the two goals Congress
set for monetary policy—maximum employment and stable prices.” Over the period, Powell is likely to field a
variety of questions, covering topics such as monetary policy, the impact of Donald Trump’s tariffs, and the
potential changes to bank capital requirements. - Ukraine ‘may be Russian someday,’ Trump says, as the U.S. ups the pressure on Kyiv and allies
Washington’s envoys will push partners on the continent to take on more responsibility for Kyiv, when U.S.
and European officials meet in Brussels to discuss assistance for Ukraine on Wednesday. President Donald
Trump’s administration has sent out numerous smoke signals that it expects Europe to shoulder the burden
of supporting Kyiv. The Russia-Ukraine war is approaching its third anniversary, and Washington wants
something back from Ukraine. - India’s oil minister says ‘we play by the rules,’ as markets weigh U.S. energy sanctions
India will cooperate with international sanctions, the country’s oil minister told CNBC on Tuesday, as markets
eye future U.S. policy under the new administration of President Donald Trump. “We play by the rules. If
there is an international sanction, which is anchored, we would not want to go around it or anything,” India’s
Minister of Petroleum and Natural Gas Hardeep Singh Puri told CNBC’s Sri Jegarajah on the sidelines of the
annual India Energy Week conference. “On Russia, yes, there was a price cap, and we adhered strictly to the
price cap. Going forward, if there are issues, we will address them.” India’s refiners have been snapping up
discounted Russian oil since Western and G7 energy sanctions barred many consumers from Moscow’s
supplies, in an effort to whittle down Russia’s war coffers after its invasion of Ukraine. Countries not subject
to the measures have been able to use insurance and shipping providers to facilitate the acquisition and
transport of Russian crude procured under a price threshold. New Delhi has repeatedly defended its
purchases as a matter of national interest. “There is no sanctioned country, first of all. It’s a lot of
misrepresentation that’s taking place. Today, Europe still buys 25% of its gas from Russia. They buy other
critical energy from there. So there’s no sanction,” the energy minister said Tuesday. - Alibaba ADRs rose 1.3%, after The Information reported that Apple has started working with the
Chinese tech firm to roll out artificial intelligence features in China
Baidu, which was previously favored by the iPhone maker according to media reports, dropped 4.7%. The
Information, citing one unidentified source familiar with the matter, said that Apple and Alibaba have
submitted the AI features for approval by China’s cyberspace regulator. A Wall Street Journal report in March
2024 said that Apple was in talks to use Baidu’s AI model for its devices in China, but in December, The
Information reported that Baidu’s collaboration with Apple faced setbacks due to technical issues. - Intel stock jumps after JD Vance’s speech supporting U.S.-made AI
Intel Corporation (NASDAQ:INTC) stock rose sharply Tuesday in lieu of comments from U.S. Vice President JD
Vance about U.S. manufacturing of AI chips. At 12:35PM ET, shares of Intel were up 7.5%. Vance delivered a
keynote speech at the 2025 Paris Artificial Intelligence Action (WA:ACT) Summit early Tuesday. In his speech,
Vance offered insight into the U.S.’s position in the AI sector and its focus on supporting companies
manufacturing AI systems within the U.S. This served as a boost for Intel Corp, a notable tech company with a
considerable stake in U.S. manufacturing. Vance defined the U.S. policy on AI going forward, stating, “The
Trump administration will ensure that the most powerful AI systems are built in the U.S. with American
designed and manufactured chips.” In March 2024, Intel announced plans to invest some $100 billion in
U.S. manufacturing. The investment would predominantly occur through building “the largest AI chip
manufacturing site in the world” near Columbus (WA:CLC), Ohio, according to CEO Pat Gelsinger. Intel also
has plans to modernize existing factories on U.S. soil in New Mexico, Oregon, and Arizona. Another reason for
Intel’s stock rise is a positive new CPU review by Tom’s Hardware. Preliminary benchmarks for its new Arrow
Lake-based Core Ultra 9 275HX processor showed promising results against competitors, sparking investor
interest. - Marriott shares fell 5.4% after the company’s guidance for net rooms growth proved softer than some
analysts expected
Marriott International is forecasting net rooms growth of 4% to 5% this year, below the 6.8% growth notched
in 2024. The company is projecting adjusted earnings per share of $9.82 to $10.19 and revenue per available
room to climb in the range of 2% to 4% this year. Meanwhile, Marriott’s fourth-quarter profit beat estimates.
The company reported adjusted earnings per share of $2.45, above the $2.37 average analyst estimate. - Kering SA shares rose 1.3% due to better-than-expected profit and signs of stabilization at Gucci, its
biggest brand
Gucci, which accounts for almost two-thirds of Kering’s profit, has been hurt more than rivals by weakening
luxury demand, particularly in China. Kering saw a slight improvement in sales between the third and fourth
quarter in the country, according to Chief Financial Officer Armelle Poulou. Still, Gucci revenue fell 24% on a
comparable basis in the final quarter of last year. However, cost-control measures helped Kering generate
annual profit that slightly beat analysts estimates, both at Gucci and overall. Kering is seeking to rein in
expenses by implementing a headcount freeze and supply chain cost reductions, and plans to do more deals
with funds to reduce its exposure to property assets and lower its debt. - Tesla drops 6% after BYD partners with DeepSeek, Musk adds to DOGE distractions with OpenAI bid
Tesla shares dropped 6% on Tuesday after Chinese rival BYD announced plans to develop autonomous
vehicle technology with DeepSeek, and said it would offer its Autopilot-like system in nearly all of its new
cars, adding to fears that Elon Musk’s company is falling behind the competition. There’s also growing
concerns surrounding Musk’s distractions outside of Tesla, after news surfaced that the world’s richest
person is offering to lead an investor group in purchasing OpenAI, while he steps up his work with President
Donald Trump’s White House. Tesla’s stock price has slid for five straight days, falling close to 17% over that
stretch to $328.50, and wiping out over $200 billion in market cap.
BYD, which has emerged as Tesla’s fiercest rival on the world stage, said on Monday that at least 21 of its
new model vehicles will come equipped with its partially automated driving systems that include features for
automatic parking and navigating on highways. Tesla doesn’t yet offer a robotaxi and its EVs currently require
a human driver to remain at the wheel, ready to steer or brake at any time. On Tesla’s earnings call last
month, Musk said the company is aiming to launch “Unsupervised Full Self-Driving,” and a driverless
rideshare service in Austin, Texas, in June. Alphabet’s Waymo already operates a robotaxi service in Austin as
well as in parts of Phoenix, San Francisco. “In our view, competition between Waymo, Tesla and a host of
Chinese players is a key driver on the path to commercialization” of robotaxis,” Morgan Stanley analysts
wrote in a note to clients after the BYD announcement. The firm recommends buying the stock and has a
price target of $430. Waymo said on Tuesday that it added 10 square miles of coverage to its robotaxi service
in Los Angeles. - Super Micro Gains on Long-Term Forecast, Pledge on Filings
Super Micro Computer Inc. rose in extended trading after giving an aggressive long-term revenue outlook and
saying it “believes” it will meet a Nasdaq Inc. deadline to file audited financial results. Sales will be $40 billion
in the fiscal year ending in June 2026, the company said Tuesday in a statement, which also provided
preliminary fiscal second-quarter results. Analysts, on average, estimated $30.7 billion for fiscal 2026,
according to data compiled by Bloomberg. San Jose, California-based Super Micro has seen an explosion in
demand for servers containing high-powered chips needed to run artificial intelligence workloads. Last week,
the company said it had reached full production availability for products containing Nvidia Corp.’s new
Blackwell B200 chips. Still, the near-term forecast and reported results came in shy of expectations. For the
current fiscal year ending in June, Super Micro cut its revenue outlook to about $24.3 billion from $28 billion.
In the current quarter ending March 31, the company’s projected sales and adjusted profit missed the
average estimates. The shares jumped more than 8% in extended trading after Chief Executive Officer Charles
Liang discussed the forecast on a conference call following the release of the preliminary results. Earlier, the
stock had closed at $38.61 in New York and has gained 27% this year. Super Micro’s strong 2026 sales
outlook “implies that the market and appetite for large AI deals haven’t waned, supporting AI growth
momentum into 2026 against tough comparisons,” wrote Woo Jin Ho, an analyst at Bloomberg Intelligence,
who added that the trend may hold true for Dell Technologies Inc. and Hewlett Packard Enterprise Co. - Coca-Cola shares gained 4.7% after its profit beat Wall Street expectations as shoppers paid higher
prices for the company’s sodas, energy drinks and juices
The maker of Sprite, Fanta and Minute Maid said that adjusted earnings per share for the quarter were 55
cents, above the average analyst estimate of 52 cents. Coca-Cola has been largely unscathed even as budget
conscious shoppers have been pulling back on purchases of a wide range of items at the supermarket. The
company had been raising prices for several quarters. The soda giant said that its price mix, or the prices it
charges across a range of products, during the fourth quarter increased by 9%. Volume was up 2%. For the
full-year, Coca-Cola expects adjusted earnings per share to grow 2% to 3%, and organic sales to gain 5% to
6%, below analyst expectations of 7.1%. The “guidance looks appropriate with some likely room for upside,”
wrote Piper Sandler analyst Michael Lavery. “Lower-income segments in the US and Europe are under
disposable income pressure,” Chief Executive Quincey said. “The rest of the consumer base is actually still
gaining in terms of disposable income and still saving.”
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