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Hi there! Coincidentally, while I was sipping a cup of green tea, I came across an article stating that tea is the most widely consumed beverage in the world, with up to 3.7 billion cups enjoyed daily, following water. Different countries have their unique tea traditions, which made me realize that my mum, her mum, and those before them were onto something. They truly understood the benefits of a good cup of tea, hot or cold.
In Grenada, we have tea for almost every occasion and ailment. We love our bush tea. Growing up, I remember there being a bush for each need in our backyard or in our neighbours’ yards. If I had a fever, there was Fever Grass or Lemongrass tea to help; if I had a cold, Zebapique tea would do the trick.
Grenadians also enjoy tea parties as a way to socialize. These gatherings often include entertainment such as live music, fashion shows, or showcases of local arts and crafts. A variety of hot teas are served alongside appetizer-sized cheese sandwiches, sausage rolls, beef patties, cheese straws, and other freshly baked, delectable pastries. Yum!
So, take a break and enjoy a cup of tea!
Alright, let’s dig in!
Last Week’s Market Overview (February 16 - February 22, 2025)
Markets faced turbulence last week, grappling with new tariffs, geopolitical uncertainties, and lackluster economic data. U.S. stocks ended the holiday-shortened week in the red, with the Dow logging its worst day of 2025 last Friday. The Nasdaq and S&P 500 also posted weekly declines amid profit warnings from Walmart and weakening consumer sentiment. In contrast, Asian markets secured their sixth consecutive weekly gain, while European stocks ended mixed due to rate-cut uncertainties. Treasury yields fell as bonds rallied in response to economic data that raised concerns about slowing growth.
U.S. Markets Recap
Equities:
Dow Jones: -2.6% for the week
Nasdaq: -2.5% for the week
S&P 500: -1.7% for the week
U.S. equities traded sideways early last week, with the S&P 500 reaching fresh all-time highs before turning lower. Market sentiment wavered as President Trump announced new tariffs set to take effect in April, targeting key sectors like automobiles, semiconductors, and pharmaceuticals. However, markets found some support from reports that U.S. officials were engaging with Russia to discuss a ceasefire in Ukraine. Last Wednesday, the release of the January FOMC meeting minutes reinforced the Federal Reserve’s patient stance on rate cuts.
Stocks took a downturn last Thursday after Walmart's weaker-than-expected profit guidance raised concerns about the health of consumer spending. Last Friday’s market action was dominated by disappointing economic reports, including a drop in consumer sentiment and weak flash PMI readings, which led to increased selling pressure. Additionally, monthly options expiration contributed to downside flows.
Fixed Income:
Bloomberg U.S. Aggregate Index: Higher for the week
2-Year Treasury Yield: +6 basis points
10-Year Treasury Yield: +6 basis points
Treasury yields initially edged higher but reversed course following last Friday's disappointing economic data, which dampened growth expectations. The Fed minutes revealed discussions about pausing or slowing the pace of balance sheet runoff due to concerns over liquidity fluctuations tied to the ongoing debt ceiling debate. Despite rising long-term inflation expectations, bond yields fell as investors interpreted the Fed’s cautious stance as supportive for Treasuries.
Commodities:
The commodities sector saw mixed performance, with gold and silver rising amid safe-haven demand, while copper slumped sharply. Oil prices edged lower last week.
Gold: +1.81%
Silver: +0.48%
WTI Crude Oil: -0.69%
Copper: -2.24%
Aluminum: +3.13%
Currencies:
The U.S. dollar weakened slightly as risk sentiment fluctuated. The British pound and Japanese yen gained, while the euro remained under pressure.
U.S. Dollar Index: -0.09%
Euro: Slight decline
British Pound & Japanese Yen: Strengthened
U.S. Economic Recap (February 16 - February 22, 2025)
Federal Reserve Insights
The January FOMC meeting minutes underscored a patient stance, with policymakers noting persistent inflationary pressures and uncertainties tied to President Trump’s new trade policies. The Fed expects inflation reports to improve by April or May, setting the stage for potential rate cuts in late summer. However, officials emphasized that policy will remain restrictive until clearer evidence of inflation moving toward 2% emerges.
Consumer Sentiment & Economic Data
University of Michigan Consumer Sentiment: Declined, with longer-term inflation expectations rising to 3.5%
PMI Composite Data: Below expectations, with services activity slipping into contraction at 49.7 (vs. 53.0 expected)
Manufacturing PMI: Slightly exceeded expectations
Global Markets Recap (February 16 - February 22, 2025)
Europe:
European equities ended mixed last week, with the STOXX 600 eking out a small gain. Switzerland and Italy outperformed, while the U.K., France, and Germany lagged. Markets were buoyed by U.S.-Russia peace talks but weighed down by rate-cut uncertainties. Rising jobless claims and elevated wage growth in the U.K. diminished any hope for rapid policy easing by the Bank of England (BoE).
Asia:
The Asia-Pacific region secured its sixth consecutive weekly gain, driven by strong performances in Chinese tech stocks. The Hang Seng Index climbed nearly 3%, strengthened by AI investment enthusiasm, particularly from Alibaba. Taiwan and South Korea also advanced, while Japan ended lower following hawkish remarks from the Bank of Japan (BoJ).
Crypto Recap (February 16 - February 22, 2025)
Bitcoin (BTC): As of Wednesday (2/26/2025), BTC has continued its downward trajectory, breaching a key support/resistance level at $85,900, hitting $82,204 before buyers stepped in to defend the level. If Bitcoin fails to hold above $82,000, the next key support level to watch is $74,000, which could trigger a sharper decline in the coming days.
Bybit Hack: $1.5 billion in Ethereum stolen, sparking panic withdrawals exceeding $5.5 billion.
FTX Payouts: Creditors received 119% of claims via Kraken.
SEC Regulatory Shift: Dropped appeal in crypto dealer case, signaled a more favourable stance toward digital assets.
Last week’s top crypto gainers: $SEI, $TAO, $OM, $SONIC (formerly FTM)
Here are other key highlights from last week:
Analysts said AMD shares have upside potential despite data center weakness.
Coinbase expanded the US crypto futures market with CFTC-regulated Solana.
MANTRA (OM) launched a program for RWA startups with Google Cloud support.
Exodus integrated Venmo for crypto purchases.
NFT brand Doodles announced the launch Solana-based token called DOOD.
This is a crazy week in the markets!
Key U.S. Economic Releases:
Tuesday: House Price Index, CB Consumer Confidence
Wednesday: New Home Sales
Thursday: Q4 GDP, Jobless Claims, Durable Goods Orders, Pending Home Sales
Friday: Core PCE Inflation (Fed preferred gauge for inflation)The , Chicago PMI
Fed speakers this week:
Tuesday: Logan, Barr, Barkin
Wednesday: Barkin, Bostic
Thursday: Schmid, Barr, Bowman, Hammack, Harker
Friday: Goolsbee
Earnings:
Investors were on edge waiting for NVIDIA (NVDA) Earnings on Wednesday (2/26/25 after market close). The results are in:
Nvidia (NVDA) Q4 Earnings
Revenue: $39.3B (+78% YoY, beating $38.3B estimate)
EPS: $0.89 (vs. $0.84 expected)
The Data Center segment posted strong AI-driven growth
Q1 2026 guidance: $43B revenue (above $42.3B estimates)
Other key Earnings Releases to watch this week are outlined in red in the chart below.
Global Economic Events This Week:
Trading Tip:
“Post-Election year can take a toll on March gains!”
Week 2/16/25 - 2/22/25 Recap
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Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.