Markets waver as economic and tariff worries swirl

Dow fell 40, advancers over decliners 2-1 & NAZ slid back 77.  The MLP index added 1 to the 326s & the REIT index rose 3 to the 421s.  Junk bond funds inched higher & Treasuries saw a little buying which reduced yields.  Oil remained in the 69s & gold rebounded 48 to 2896.

Dow Jones Industrials

Bitcoin rallied over the weekend after Pres Trump announced a US strategic crypto reserve & teased new details about the highly anticipated move by his cryptocurrency industry backers.  Bitcoin was last trading above the $93,000 level, which is 19% above its Fri low of $78,226.  Over the weekend, Trump announced the creation of a strategic crypto reserve – a pivot from the “bitcoin stockpile” he previously touted – that he said will include ether, XRP,  Solana's SOL token & Cardano's ADA, in addition to Bitcoin.  Bitcoin rose as high as $95,000, while the smaller coins rocketed double digits.  It was welcome news to investors, who have been anxious for cryptocurrencies to come out of their consolidation.  Last week, bitcoin fell under the key $90K level for the first time in 3 months to, at one point, 25% below its Jan all-time high.  That break below support put it at risk of a bigger slide toward $70K.  Losses in smaller, riskier coins have been even steeper.

Bitcoin jumps nearly $14,000 in three days on Trump’s crypto reserve announcement

Treasury Secretary Scott Bessent said that Pres Trump's proposed tariffs are unlikely to raise inflation, in part because China will “eat any tariffs that go on.”  His comments come just 2 days before the tariffs are scheduled to go into effect tomorrow.  Trump is expected to impose  25% tariffs on imports from Mexico & Canada.  The pres also announced the US would impose an extra 10% duty on Chinese imports, on top of the 10% tariff he levied on the country on Feb 4.   Some economists have raised concerns about the possibility that the tariffs could lead to an increase in inflation & keep interest rates elevated into 2026.  When asked Bessent was asked what impact the tariffs could have on the average household, he said, “Well, we don’t know yet because it’s path-dependent, but what I can tell you is that I’m not worried about China,”  “China will pay for the tariffs because their business model is exporting their way out of this inflation.”  “They will eat any tariffs that go on,” Bessent added.  China’s Ministry of Commerce said Fri  that it “firmly opposes” Trump's latest tariff hike & vowed to retaliate as necessary.  After the US enacted an initial round of tariffs in Feb, China raised duties on certain US energy imports & added 2 US companies to an unreliable entities list.  Experts suggested China could take similar measures again following the addition of fresh tariffs.  “If the U.S. insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests,” a Ministry of Commerce spokesperson previously said.

Treasury Secretary Bessent says Trump tariffs won’t cause inflation to increase

Treasury yields sat near flat as investors awaited more clarity on Pres Trump's plans to impose tariffs.  The benchmark 10-year yield Treasury yield slid 3 basis points to 4.199% & the 2-year yield Treasury yield added about 1 basis point, siting at at 4.001%.  1 basis point is equal to 0.01% & yields & prices move in opposite directions.  Trump's tariff plans are again in focus this week, with 25% duties on imports from Canada & Mexico expected to go into effect tomorrow.  Commerce Secretary Howard Lutnick said that the 25% tariff against Canada & Mexico are “fluid” which means it may be lower.  The 10% duty on China imports is “set,” he added.  Traders have expressed concerns about the effects of tariffs on the economy, as legendary investor Warren Buffett made a rare comment against Trump's policies over the weekend.  Buffett, the chairman & CEO of Berkshire Hathaway, said tariffs are “an act of war, to some degree” and could trigger inflation & hurt consumers.  “Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!” Buffett added.  “And then what? You always have to ask that question in economics.  You always say, ‘And then what?’”

Treasury yields are little changed as tariff deadline nears

Stocks were mixed as a looming deadline fueled uncertainty around Pres Trump's tariff plans & investors looked ahead to the monthly jobs report & key retail earnings.  Mar trading is kicking off with investors encountering more questions than answers as tariff deadlines loom, the Federal Reserve's next meeting fast approaches & the US economy faces the test of disproving investors encountering more questions.