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Morning Research Notes - 27.02.25
US markets ended mixed yesterday as tariff concerns weighed on investor sentiment, despite a rebound in tech stocks led by Nvidia’s ahead of its Q4 earnings. Major commodities experienced a bullish run on Wednesday: Gold fell by 0.03% to $US2,915.88 an ounce, Brent oil declined by 0.5% to $US742.65 a barrel and Iron ore dropped 0.1% to close at $US105.95 a tonne.
Wall Street had a mixed close yesterday. The S&P 500 fell 0.2%, the Nasdaq Composite rose 0.3%, and the Dow Jones Industrial Average dropped 0.4% (186 points). Investor sentiment was dampened by President Trump’s announcement of a 25% tariff on EU goods, raising fears of a global trade war. Tech stocks, however, rebounded, with Nvidia up over 3% ahead of its earnings report. Super Micro Computer surged more than 12% after filing delayed financial reports. Lowe’s gained 2% on strong earnings, while Workday spiked over 6% on better-than-expected results. Conversely, AppLovin tumbled 12% due to a disclosed short position, and Flywire sank over 37% on weak revenue. General Motors rose more than 3% after announcing a $6 billion share repurchase and dividend increase.
The Australian stock market closed lower on Wednesday, with the ASX 200 falling by 0.14%. Major sectors such as Materials (-1.61%) and Information Technology (-0.52%) closed in the red. In contrast, Financials (0.71%), Healthcare (0.36%), and Utilities (0.23%) managed to notch gains. The commodities sector had a bearish day, with Aluminium, Copper, Zinc, and Nickel all falling.
Chart of the day
Since Donald Trump’s election, European assets have surprisingly surged, with the Euro Stoxx 50 up 12% compared to the S&P 500’s 3.5%. This rally is driven by investors seeking "bargain" stocks in Europe as tech giants’ valuations appear overinflated. Mizuho strategist Jordan Rochester calls this the “Make Europe Great Again” (MEGA) trade, suggesting a lasting transformation rather than a mere rebound.
Source: Wall Street Journal
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