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FT’s editor Roula Khalaf chose her favorite stories in this weekly newsletter.
Tech stocks led a sharp market sell-off Thursday as Donald Trump’s latest threat to imports from major trading partners increased tariffs on investors’ concerns about the health of the U.S. economy.
The blue chip S&P 500 lost 1.6%, down to 4.2% since last Wednesday and eliminated the market’s early growth.
Nasdaq High-Tech composites fell 2.8%, and NVIDIA fell 8.4% off and reported revenues nearly 80%.
According to investors, investors’ lukewarmness to NVIDIA’s returns has made the market vulnerable to macroeconomic news. The latest announcement announced by the U.S. president on Thursday about imports of Chinese, Mexico and Canada came after data released in a few days showed a sharp decline in U.S. consumer and business sentiment.
“NVIDIA isn’t saving the world,” said Mike Zigmont, co-head of trading at Vivdom Investment Group. “The results are great, but not so incredible that everyone wants to buy more stocks.”
He added: “The bear is winning the battle.”
U.S. stocks climbed hopes that a new administration would develop pro-business economic policies after the November Trump election, pushing the S&P 500 to its latest record on Wednesday.
But the index has fallen in recent days as concerns about the health of the U.S. economy, triggered by a string of gloomy economic data, have begun to weigh emotions.
Vandatrack, a data company that monitors retail transaction traffic, said retail investors often step in and buy stocks when the market falls.
As the stock fell, the sale of U.S. government debt was worth 10 years of fiscal yield, and the stock price rose 0.03 percentage points to 4.28%.
Treasury, considered a safe haven during market volatility, has been gathered in recent weeks into an increasing list of data that worsens the outlook for the world’s largest economy.
The strength of the dollar against the basket of the other six major currencies increased by 0.8%.
However, there are concerns that some market participants seem to have exaggerated the upcoming economic slowdown.
Steven Blitz, chief economist at TS Lombard, said weak consumer sentiment data released over the past week gave “overexpanding markets a chance to correct”.
“Trump recession? Not too fast,” he added.
