Log in to today’s North American session Market wrap for February 23
Traders came back for a ride after a tense weekend. Overall, nothing spectacular happened between the US and Iran, which could have been a relief for risk assets, but the recent tariff turmoil said otherwise.
Economic uncertainty is back, leading to today’s gigantic outflows from risk assets. While the Supreme Court ruled that IEEPA (Liberation Day) tariffs were illegal, the White House’s renewed aggressive stance brought the conversation back to the unstable outlook for deglobalization.
Global Equities took a turn lower, of course led by the US Indexes, which all closed down by more than 1%.
The DJIA took the most significant hit, down 1.74% at the close and breaching some concerning technical indicators to the downside. If sentiment takes a decisive turn here, US Equities could quickly spark a widespread bearish contagion.
Cryptocurrencies did not escape the most recent turn, with Bitcoin now $4,000 below its $59,900 late January trough and other altcoins unable to withstand the pressure.
Digital assets can’t catch a break. Not too surprising, given the precarious investor tone since the October all-time highs in the AI and Tech sectors.
A bottom will form there when the clouds dissipate, but as seen in New York’s consequential snowstorm, the weather isn’t looking very clear.
At least, Precious Metal enthusiasts can rejoice, as recent turmoil brought back demand, particularly to Silver and Gold, with the two dancing higher to start the week.
The US Dollar had initially dipped at the Globex open before rebounding. It remains technically solid, though its outlook for the times ahead remains peculiar, particularly as Iran tensions remain a background catalyst underpinning the Reserve Currency.
