Daily Market Newsletter – March 6, 2025

Equities

The market had a bit of a rollercoaster ride on Wednesday but managed to finish the day with a strong relief rally. After a sharp early decline, the S&P 500 dropped 1.3% at its lowest point but managed to close in the green, finishing up around 0.1%. Talk about a comeback!​. The Dow Jones followed suit, finishing up 0.3% after dropping more than 1% earlier in the day​. Similarly, the Nasdaq ended up 0.3% as tech stocks led the way higher, showing resilience despite broader market concerns​.

A notable standout was Tesla, which surged 3% despite some bad news on its China sales dropping 49% year-on-year​. That didn’t stop the stock from bouncing back, proving once again that sometimes the market doesn't always follow the narrative.

Despite some concerns in trade-sensitive sectors, the strong finish points to a market still looking for opportunities to rally when the mood lightens. Keep an eye on today’s action to see if this positive momentum continues.

Crypto

Bitcoin had its usual ups and downs, but Ethereum (ETH) made headlines by finishing above $2,233 to end Wednesdaylike ETH bulls are continuing to hold their ground, even if the broader crypto market has its usual share of volatility. With Ethereum trading solidly above that $2,200 level, traders are eyeing the next move. Solana is also on the up-and-up, staying above $145 and holding steady . We’re stlid support here, so crypto might just be setting itself up for another leg higher—especially if the broader market gets a boost.

VIX & Volatility

The VIX cooled down a bit, ending at 20.28, but still showing that there’s a bit of fear in the marke. It’s a he highs we saw earlier this week, but volatility is still present, and any bad news could cause the VIX to spike again. That said, the relief rally we saw in equities helped ease some of that fear, although traders are clearly still on edge about potential risk events. Keep an eye on the VIX—it could be in for a further dip if the market maintains this positive momentum, but a sudden news shock could send it back up again.

Tariff Wars

The tariff fight is still very much in the spotlight, with U.S.-Canada-Mexico trade relations continuing to play a pivotal role in market sentiment. President Trump’s latest tariffs on Canadian and Mexican goods kicked off on March 4, and both nations have retaliated with their own tariffs. The U.S. dollar remains under pressure, and traders are still uncertain whether the situation will de-escalate or spiral further. Keep an eye on any statements from U.S. officials or fresh retaliatory measures from Mexico and Canada that could spark another wave of market volatility.

BlackRock & Panama

In other news, BlackRock is continuing to make waves with its acquisition of Panama Canal ports. The deal to take control of these strategic assets is still making headlines, and it's clear that this will have significant implications for global trade and geopolitics. While the immediate market reaction has been muted, it's a long-term play that signals U.S. strategic interests in the region, especially as tensions with China persist. As this deal progresses, we'll be keeping an eye on any new developments that could shift the global trade landscape.

Gold & Commodities

Gold is holding steady near all-time highs, with prices hovering just below $2,900. There’s a lot of uncertainty in the market right now, and when that happens, gold tends to benefit as a safe-haven asset. With the tariff wars and fears of inflation continuing to linger, gold looks well-positioned to keep its shine. On the energy front, oil prices dipped below $70 a barrel, reflecting concerns about demand in the wake of the trade tensions. However, any positive news about a tariff deal could help oil prices rebound.

FX & Macro

The EUR/USD broke through 1.07, signaling renewed optimism in the euro as concerns about the U.S. dollar persist amid the tariff tensions . As we’ve seen, the easing from stronger-than-expected fiscal moves within the EU, alongside rising inflation expectations. The dollar is still a safe-haven, but a weak U.S. economic outlook and uncertain trade policies are dampening its momentum. Keep watching the euro—if it maintains strength, we could see more upward movement, especially as U.S. data comes in.

What to Watch

• U.S. Jobs Data (Nonfarm Payrolls): This Friday’s U.S. jobs report could be a game-changer for market sentiment. A solid payroll numb​l the economy is holding up well, even with the trade tensions, while a disappointing report could fuel recession fears and send markets back into a tailspin.

• Trade Talks: The U.S.-Canada-Mexico tariff saga is far from over. Any new developments, whether positive or negative, could move markets in a big way.

• Central Bank Dec​ an eye on any central bank statements, particularly from the European Central Bank (ECB), which may announce further easing measures to stimulate the economy. These moves could shift the forex landscape.

That’s all for today! It’s shaping up to be another eventful day in the markets. Keep your eyes on the data, watch for any signs of a breakthrough in trade talks, and remember: Volatility equals opportunity, but only if you’re staying ahead of the curve. Let’s see how things shake out—fingers crossed for more green and less red!

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Samuel Leach

Founder of the cool newsletter

www.samuelandcotrading.com