- Stock Selloff Eases as Trump Comments Lift Mood: Markets Wrap
Stocks edged up in Asia along with futures for European and US markets after President Donald Trump
sought to reassure a business roundtable over the outlook for the economy and the steps he’s taking to
boost growth. A gauge of regional shares traded in a tight range while Australia’s benchmark S&P/ASX 200
index hovered near a correction as Trump’s tariffs on steel and aluminum took effect with no exemptions.
Treasuries rose and the dollar strengthened against all its Group-of-10 peers ahead of a consumer inflation
reading later Wednesday. Futures for the S&P 500 and the Nasdaq 100 gained after Trump said he doesn’t
see a US recession, downplaying Wall Street’s jitters around his trade war. Contracts for Europe jumped as
much as 1% after Ukraine accepted a US proposal for a 30-day truce with Russia. Trump’s tariff policy,
geopolitical realignments over Ukraine, sticky inflation and the unknown pace of Federal Reserve interest
rate cuts have hit the markets this year, leaving US stocks on the verge of a correction. The VIX gauge of stock
volatility is hovering near its highest since August, while a similar measure for Treasuries is at levels not seen
since November as market participants remain nervous about US economic growth. - Dow drops more than 450 points, S&P 500 posts back-to-back loss over Trump tariff uncertainty
The S&P 500 slid in a head-spinning session for traders as they grappled with new tariffs proposed by
President Donald Trump that were in flux throughout most of Tuesday. The trade policy uncertainty has
brought the benchmark to the brink of a correction, which is defined as a decline of 10% from its high.
The S&P 500 ended the session 0.76% lower, falling to 5,572.07. At its low of Tuesday’s session, the index was
10% below its record close. The Dow Jones Industrial Average lost 478.23 points, or 1.14%, to close at
41,433.48. The Nasdaq Composite slipped 0.18%, closing at 17,436.10. The S&P 500 was in the green at one
point during the trading session before Trump declared on Truth Social that Canadian steel and aluminum
duties would double to 50% from 25%, effective Wednesday. The president made the move in response to
Ontario Premier Doug Ford’s surcharge on electricity exported to the U.S. Later in the day, Ford said he was
temporarily suspending the 25% surcharge after talking with Commerce Secretary Howard Lutnick. - Oil prices rise on weak dollar, but concerns over tariff impact cap gains
Oil prices edged up early on Wednesday, helped by a weaker dollar, but mounting fears of a U.S. economic
slowdown and the impact of tariffs on global economic growth capped gains. Brent futures rose 27 cents, or
0.39%, to $69.83 a barrel at 0110 GMT, while U.S. West Texas Intermediate crude futures gained 29 cents, or
0.44%, to $66.54 a barrel. Despite the weakening economic outlook, oil held steady in a positive position,
Daniel Hynes, senior commodity strategist at ANZ said. “That’s a sign that near-term demand for crude
remains strong.” The dollar index, which fell 0.5% to fresh 2025 lows on Tuesday, boosted oil prices by
making crude less expensive for buyers holding other currencies. But U.S. stock prices, which also influence
the oil market, fell again on Tuesday, adding to the biggest selloff in months, with investors rattled over
increased tariffs on imports and souring consumer sentiment. Trump’s protectionist policies have
shaken global markets. He has imposed, then delayed tariffs on major oil suppliers Canada and Mexico, while
also raising duties on China, prompting retaliatory measures. Over the weekend, Trump said a “period of
transition” was likely and declined to rule out a U.S. recession. In supply, U.S. crude oil production is poised
to set a larger record this year than prior estimates, at an average 13.61 million barrels per day, the U.S.
Energy Information Administration said on Tuesday. Investors are waiting for U.S. inflation data due on
Wednesday for clues on the path of interest rates. They also are closely monitoring OPEC+ plans. The
producer group has announced plans to increase output in April. In the U.S., crude oil stockpiles rose by 4.2
million barrels in the week ended March 7, market sources said, citing American Petroleum Institute figures
on Tuesday. Investors now await government data on U.S. stockpiles, due on Wednesday, for further trading
cues. - Gold holds steady as markets eye inflation data
Gold held steady on Wednesday ahead of a key U.S. inflation data that could help gauge the Federal
Reserve’s interest rate path amid trade tensions and economic slowdown fears, while attention was also on a
potential ceasefire deal in Ukraine. Spot gold was flat at $2,916.69 an ounce, as of 0300 GMT,
while U.S. gold futures firmed 0.1% to $2,922.30. “Gold is operating in ‘consolidation mode’ ahead of the
next batch of U.S. inflation data,” KCM Trade chief market analyst Tim Waterer said. Investors await U.S.
Consumer Price Index (CPI) data due later in the day to analyze the Fed’s interest rate stance going forward
this year. If rising price pressures force the Fed to keep interest rates higher, gold may lose its allure as it is a
non-yielding asset. U.S. President Donald Trump’s tariffs are widely expected to stoke inflation and economic
uncertainty, and have prompted gold to reach a record high of $2,956.15 on February 24. - Trump announces new tariffs on Canadian steel, aluminum
U.S. President Donald Trump announced a significant increase in tariffs on steel and aluminum imports from
Canada on Tuesday, escalating trade tensions between the two countries. The new tariffs will raise the duty
on these imports to 50%, up from the current 25%. This action is set to take effect on March 12th.
U.S. stocks, which were firming early after Monday’s brutal sell-off, resumed downside pressure following
Trump’s announcement. The President’s decision, disclosed via Truth Social, comes in response to Ontario’s
imposition of a 25% tariff on electricity entering the United States. Trump has also called for Canada to
eliminate what he describes as “Anti-American Farmer Tariff” of 250% to 390% on various U.S. dairy
products. He labeled these tariffs as “outrageous” and indicative of Canada being “one of the highest tariffing
nations anywhere in the world.” In his statement, Trump also threatened to declare a National Emergency
on Electricity within the threatened area, which he believes will empower the U.S. to address what he
considers an “abusive threat” from Canada. The President warned that if Canada does not drop other
significant tariffs, he will further increase duties on April 2nd on cars imported from Canada, a move he says
could “permanently shut down the automobile manufacturing business in Canada.” President Trump
criticized Canada’s contribution to national security costs, suggesting that the United States is subsidizing
Canada’s defense to the tune of more than $200 billion a year. He questioned the sustainability of this
arrangement and proposed a radical solution: for Canada to become the fifty-first state of the United States.
Trump argued that this would eliminate tariffs, reduce Canadian taxes, and resolve national security and
border issues. - U.S. and Ukrainian officials meet for first time since Oval Office spat, but Zelensky stays away
U.S. and Ukrainian officials are holding talks in Saudi Arabia on Tuesday, marking the first time the two
parties have met since the spectacular Oval Office spat between President Donald Trump and Ukraine’s
leader, Volodymyr Zelenskyy, in late February. U.S. Secretary of State Marco Rubio is leading the American
delegation, which includes special envoy Steve Witkoff and National Security Advisor Mike Waltz. The
Ukrainian team will be led by Zelenskyy’s chief of staff, Andriy Yermak. Zelenskyy is not involved in the
meeting, although he traveled to Saudi Arabia on Monday to meet Crown Prince Mohammed bin Salman in
Riyadh. Saudi Arabia has assumed a central role in bringing the U.S., Ukraine and Russia together to look for
an end to three years of war in Ukraine. The Tuesday meeting has been billed as a “high-stakes” encounter,
given heightened tensions between Washington and Kyiv that prompted the U.S. to cut all military aid and
intelligence sharing with Kyiv, putting its battlefield forces under more pressure. The gathering, the U.S. has
said, is designed to see how serious Ukraine is about making concessions to end the war, although the
compromises the U.S. has in mind — such as ceding occupied territory to Russia and forgetting any future
NATO membership — are bitter pills for Kyiv to swallow. Rubio, who also met the Saudi crown prince
separately on Monday, reiterated at the time that Kyiv would need to accept Russian control of some of its
territory as part of a wider peace deal. Russia occupies around 20% of Ukraine currently. Kyiv has said it
needs security guarantees as part of any peace deal in order to deter future Russian aggression, but the U.S.
has so far refused to offer these reassurances. - Japan’s producer prices rise 4% in February
Japan’s producer price index (PPI) landed in line with expectations, rising by 4% in February compared to the
same time period last year, as seen in a report released by the Bank of Japan (BoJ) on Wednesday.
Meanwhile, on a monthly basis, the PPI did not increase. The report also showed a 1.2% growth in Japan’s
export price index on a contractual currency basis over the year, with a 0.5% rise observed on a monthly
basis. Import prices recorded a year-on-year decrease of 1.6% while increasing by 0.5% month-on-month. - Ontario’s Ford suspends U.S. electric surcharge after Lutnick agrees to trade talks
Ontario Premier Doug Ford on Tuesday said he was temporarily suspending his province’s planned 25%
surcharge on electricity exported to the U.S. after Commerce Secretary Howard Lutnick agreed to renewed
trade talks. Ford said he and Lutnick “had a productive conversation about the economic relationship
between the United States and Canada” earlier Tuesday. “We have both agreed, let cooler heads prevail,”
Ford told reporters. The comments came after U.S. President Donald Trump escalated an already hot trade
war early Tuesday morning, by saying he would double planned tariffs on Canadian steel and aluminum
imports to 50%. Trump announced those heightened tariffs on the heels of Ford saying that he would impose
the surcharge on electricity imports to Michigan, New York and Minnesota. Ford said Lutnick agreed to meet
with him and the U.S. trade representative, Jamieson Greer, in Washington, D.C., on Thursday to discuss a
renewed United States-Mexico-Canada trade agreement. After the call between Ford and Lutnick, White
House trade adviser Peter Navarro confirmed to CNBC that Trump would not move forward with the
additional 25% tariff he had threatened earlier in the day. But the White House said that the originally
planned 25% tariff on “steel and aluminum with no exceptions or exemptions will go into effect for Canada
and all of our other trading partners at midnight” Wednesday. “President Trump has once again used the
leverage of the American economy, which is the best and biggest in the world, to deliver a win for the
American people,” said White House spokesman Kush Desai. Trump has said he will impose tariffs of 25% on
other goods imported from Canada beginning April 2. - DeepSeek AI cranks open the spigots on Chinese venture capital
DeepSeek’s artificial intelligence breakthrough has led to an “avalanche” of interest in Chinese tech firms
over recent months. It could mark a much-needed boost for the country’s investment landscape. VC
investment into China-based companies has fallen for the last three years, according to Pitchbook data.
“People are rushing just to find the next DeepSeek,” said Annabelle Yu Long, founding and managing partner
of BAI Capital in Beijing. - Tesla stock rises after worst day in almost 5 years as Musk says US production will double
Tesla stock (TSLA) bounced back on Tuesday following its worst day in five years as CEO Elon Musk said the
company would double down on US production. “As a function of the great policies of President Trump and
his administration, and as an act of faith in America, Tesla is going to double vehicle output in the United
States within the next two years,” Musk said at an afternoon event at the White House, where President
Trump said he would purchase a Tesla EV. Tesla shares rose to session highs following the event and closed
up 3.8%. Trump, who said Tesla was a “great company,” said he hoped his purchase would help boost Tesla
EV sales. Trump’s tariff policies, which have waxed and waned in intensity over the past few weeks, have the
intended goal of boosting US manufacturing, the White House said. Earlier this month, Honda was reportedly
planning to build its next-generation Civic in the US in partial response to tariffs. Also boosting Tesla today,
one of Wall Street’s biggest bulls said it was time to buy the stock. - Shares of Verizon dropped 6.6% after the company gave a muted outlook for growth in mobile-phone
subscribers in the current quarter
Competition among the big three telecommunications companies is intense as Verizon, AT&T Inc. and T
Mobile US Inc. all seek to woo customers away from their rivals with more perks and lower prices. “We’ve
seen an elevated level of competitive intensity in the quarter,” Frank Boulben, Verizon chief revenue officer,
said at a Deutsche Bank event. He noted that after the Christmas holiday, when Verizon ended its seasonal
promotions, its peers did not. “So it’s been a challenging quarter from a competitive intensity standpoint.”
New subscribers this quarter “are probably going to be soft,” he said. Verizon customers also are holding on
to their phones for longer, Boulben said, with the average life of a device now surpassing 41 months. People
are waiting to upgrade until they need a new battery, he said. - Supermicro Leads S&P 500 as AI Stocks Rise
Super Micro Computer (SMCI) shares led the S&P 500 higher Tuesday as artificial intelligence stocks turned in
a strong session. The server maker’s stock closed 11% higher at $40.84, marking the latest big swing in
a stretch of volatility. Supermicro’s shares rocketed last month after the company avoided possible
delisting by submitting delayed financial reports, but the stock has fallen 10% in the weeks since even when
Tuesday’s gains are accounted for. Supermicro and other AI companies outperformed the broader market,
which experienced a turbulent session amid political and economic uncertainty and ended lower. Shares of
Supermicro partner Nvidia (NVDA) ended the day higher, as did chip designer Broadcom (AVGO) and AI
analytics provider Palantir (PLTR). Supermicro stock has risen by about a third in 2025, but it’s still worth
more than 60% less than it was a year ago. The company is a “show-me story” for analysts at Rosenblatt,
which according to MarketWatch recently resumed coverage with a “buy” rating and $60 price target. Its
share price could continue to rise if the company meets revenue projections and “as long as there are no
more delayed filings,” the analysts reportedly said. - TSMC pitched Intel foundry JV to Nvidia, Broadcom, and AMD
TSMC pitched a deal to chipmakers Nvidia (NASDAQ:NVDA), AMD (NASDAQ:AMD), and Broadcom
(NASDAQ:AVGO) over forming a joint venture to operate Intel’s foundry business in the U.S., Reuters
reported on Wednesday, with Qualcomm (NASDAQ:QCOM) also being approached. Under the proposal,
TSMC (NYSE:TSM) will operate Intel’s factories but will not own more than 50% of the JV, the Reuters report
said, citing four sources with knowledge of the matter. Talks are in an early stage after initial reports that
President Donald Trump’s administration approached TSMC to help rescue Intel (NASDAQ:INTC), which is
struggling with weak sales and a loss-making foundry division. Intel was also seen earlier considering a spin
off of its foundry unit. Any deal will still require approval from Trump, who has signaled discomfort with
Intel’s U.S. factories being owned by a foreign entity. TSMC’s 50% stake would accommodate for this, with
the remainder of the JV operators all being U.S.-based. The potential JV comes amid increasing global
demand for data center and artificial intelligence infrastructure, with adoption of AI technology expected to
ramp up in the coming months. Any JV would also be in line with TSMC’s pledge to invest more in U.S.
chipmaking facilities. The world’s largest contract chipmaker had earlier in March announced a fresh $100
billion investment in the U.S., in addition to its ongoing development in Arizona. Broadcom and TSMC were
first seen expressing interest in some of Intel’s operations, although no formal approach was made. - Salesforce pledges to invest $1 bln in Singapore AI development over 5 years
e next five years to boost the country’s artificial intelligence development and digital transformation.
The enterprise software developer also announced a tie-up with Singapore Airlines Ltd (SGX:SIAL) to provide
AI-powered customer service products. SIAL plans to incorporate Salesforce’s Agentforce AI across its
services. Salesforce’s Singapore push will focus largely on the company’s flagship Agentforce AI service-
under which autonomous AI agents carry out several advanced tasks. Salesforce claimed that this service will
help bolster Singapore’s workforce with digital labor. The company will also increase its research and
development programs in Singapore. Salesforce has relationships with several major Singaporean companies,
including SIAL, Grab, and M1.
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