ADDX GO Market Morning Wrap - 27th Mar

Stock Market

The three major US stock indexes closed down collectively. The Dow Jones Industrial Average fell 132.71 points from the previous trading day to close at 42,454.79 points, a decrease of 0.31%; the S&P 500 Index dropped 64.45 points to close at 5,712.20 points, a decline of 1.12%; the Nasdaq Composite Index fell 372.84 points to close at 17,899.02 points, a decrease of 2.04%, marking the largest single-day decline since March 11.

 

Large technology stocks generally declined. Tesla and NVIDIA fell by more than 5%, Intel and Google dropped by more than 3%, Amazon, Meta, and Netflix declined by over 2%, Microsoft fell by more than 1%, and Apple had a slight decline. Berkshire Hathaway's Class B shares under Buffett rose nearly 1%, continuing to hit a new closing historical high.

 

After the market closed, Trump announced a 25% tariff on all cars not manufactured in the United States. There will be no tariffs if the cars are produced in the United States. Affected by this, auto stocks such as General Motors and Ford saw significant declines after the market closed.

 

Key Events

• Trump officially announces a 25% tariff on imported cars: US President Trump announced in the Oval Office that he will impose a tariff of up to 25% on all cars not manufactured in the United States and on certain auto parts. In addition to the import of complete vehicles, key auto parts (engines, transmissions, powertrain components, and electrical components) will also be taxed.
• Canadian Prime Minister Kearney: Will respond to the US tariff announcement soon and may impose retaliatory tariffs: Canadian Prime Minister Kearney said that Trump's tariff announcement is a direct attack on Canadian workers. A high-level meeting will be held on Thursday to discuss trade options. He also said that US President Trump "betrayed" the United States-Mexico-Canada Agreement, believes that he will soon have a conversation with US President Trump, and that it will be appropriate to talk to Trump; he will respond to the US tariff announcement soon and may impose retaliatory tariffs.
• Banana trade giant warns the US: Do not impose port fees on Chinese-built cargo ships: Jared Gale, Chief Legal Officer of Dole Food, the largest banana supplier in the United States, issued a warning when attending a hearing on "imposing a fee of millions of dollars each time a Chinese-built cargo ship docks at a US port" on Wednesday, saying that this proposed fee will severely impact the fresh fruit trade in the United States, and consumers will also be deeply affected.

Forex & Commodities

International oil prices rose on the 26th. As of the close, the price of light crude oil futures on the New York Mercantile Exchange rose by 65 cents to close at $69.65 per barrel, an increase of 0.94%.

The price of Brent crude oil futures in London rose by 67 cents to close at $73.06 per barrel, an increase of 0.93%.

COMEX gold futures fell by $3.40, a decrease of 0.11%, closing at $3,022.50 per ounce.

The US dollar index, which measures the US dollar against six major currencies, rose by 0.35% on that day and closed at 104.547 in the late trading of the foreign exchange market.

 

Key Events

• Bank of America raises gold price forecasts for this year and next year, with Trump's trade policy as a key support: Bank of America significantly raised its average gold price forecasts for this year and next year on Wednesday and pointed out that the uncertainty brought about by US trade policies will continue to support gold prices in the short term.Bank of America said in a report that it expects the gold price to reach $3,063 per ounce in 2025 and $3,350 per ounce in 2026. The previous forecasts were $2,750 per ounce in 2025 and $2,625 per ounce in 2026.

Cryptocurrency

Bitcoin was down 1.8% at $86,578.

Ethereum (ETH-USD) dipped 3.7% to $2,001.

XRP (XRP-USD) dropped 3.6%, BNB (BNB-USD) dipped 2%, and Solana (SOL-USD) sank 5.2%.

Dogecoin (DOGE-USD) surged 1.3%, while Cardano (ADA-USD) dropped 3%.

 

Key Events

• GameStop plans to raise $1.3 billion for Bitcoin purchases: GameStop announced on Wednesday that it plans to privately place $1.3 billion in convertible senior notes with a maturity date of 2030. In addition, the company said it will allow initial purchasers to buy notes with a total principal amount of no more than $200 million. GameStop said in a statement: "The company intends to use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with GameStop's investment policy."

Market Events and Most Anticipated Earnings Releases