{"id":100836,"date":"2025-02-12T16:28:54","date_gmt":"2025-02-12T14:28:54","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=100836"},"modified":"2025-02-12T16:30:06","modified_gmt":"2025-02-12T14:30:06","slug":"equities-report-us-equities-in-a-wait-and-see-position","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/es\/equities-report-us-equities-in-a-wait-and-see-position\/","title":{"rendered":"Equities report: US Equities in a wait and see position"},"content":{"rendered":"

US equity markets seem to maintain a wait and see position as market worries for Trump\u2019s tariff war seem to intensify. In the current report, we\u2019ll take a look at fundamentals created by Trump\u2019s tariff intentions, the Fed\u2019s intentions and have look at the wide drop of Tesla\u2019s share price. We are to compliment the review of Tesla\u2019s fundamentals also with a technical analysis of tis share price\u2019s daily chart.<\/p>\n\n\n\n

Trump stuns the markets with 25% steel tariff<\/strong><\/h2>\n\n\n\n

US President Trump announced on Monday that he intends to apply 25% tariffs on all US steel and aluminium imports, \u201cwithout exceptions and exemptions\u201d possibly by today. It should be noted that there are allready tariffs applied on US steel and aluminium imports of 10%, which are to be raised to 25%. The tariffs are expected to hit primarily US imports from Canada, Brazil, Mexico, South Korea which entered the US, duty free until now. A possible exception to the new tariffs, may be Australian exports of steel and aluminium as Australia claims to have a trade deficit with the US, an element that US President Trump seems to be taking account of. In any case, Trump\u2019s intentions to impose tariffs and his mercantile protectionist approach, combined by a wide degree of unpredictability and his flamboyant style, tends to enhance market uncertainty about the global economic outlook. Given the prementioned fundamental change, the US equity markets  may become more hesitant to advance higher, as the economic outlook of the US but also on world wide level.    <\/p>\n\n\n\n

The Fed\u2019s hawkish intentions and January\u2019s US CPI rates<\/strong><\/h2>\n\n\n\n

The Fed seems to maintain rather hawkish intentions. Fed Chairman Powell\u2019s testimony before the US Senate tended to highlight that tendency as Powell stated that the US employment market remains tight and inflation, despite still being above the banks\u2019 2% target, has slowed down. As for monetary policy, the Fed seems to be in no hurry to cut rates, a comment that implied a continuance of the tight financial conditions in the US economy for the time being. Interestingly Fed Chairman Powell also in answering questions, despite not stating his opinions on the correctness of Trump\u2019s intentions to impose tariffs and in general the US President\u2019s policies, he did acknowledge the possibility of an inflationary effect. Overall, we see the case for the bank to remain on hold for the time being, maybe even forcing the market to readjust its current expectations for a rate cut. It\u2019s characteristic that the release of the US CPI rates for January in today\u2019s early American session, showed an intensification of inflationary pressures for the past month in the US economy both on a core and headline level, which in turn may harden the Fed\u2019s hawkish stance.<\/p>\n\n\n\n

Tesla\u2019s share price continues to crater<\/strong><\/h2>\n\n\n\n

Maybe an impressive move in US stockmarkets yesterday was the almost 6% drop of Tesla\u2019s share price. The bearish movement according to analysts may have been related to Chinese rival BYD\u2019s announcement for a partnership with DeepSeek and the offering of its autopilot-like system on most of its new cars. The news tended to intensify market worries that the Chinese competition is catching up with Tesla, intensifying the bearish movement of its share price over the past four trading sessions. Yet the issue runs deeper for Tesla, the drop of revenue for the EV company by a third in China for January and a similar percentage in Australia, tend to highlight the problems faced by the company\u2019s sales department. Furthermore the intensifying US-Sino trade war and the tariffs applied on imports form China, tend also to weigh on the company\u2019s share price as the company has a number of suppliers from China for its battery components. Another negative would be the involvement of Elon Musk in the White House, as he is now in charge of DOGE, which in turn tends to bring possibly increased negative publicity, which is then possibly reflected on the company. Yet the main issue tends to revolve around Musk\u2019s distractions, given his involvement in US politics, his other existing ventures like SpaceX, the social media platform X and ideas of a bid to take over OpenAI. But its not only Musk, the whole sector seems do be going through a market fatigue. Reports highlight that recent vehicle registration data imply substantial reduction in demand of for EVs in Europe and California. Given the complexity of the issues revolving around Tesla, on a fundamental level we tend to maintain a bearish outlook for now.<\/p>\n\n\n\n

Upcoming earnings reports<\/strong><\/h2>\n\n\n\n

The number of high profile companies which is scheduled to release earnings reports in the coming week tends  to ease, yet some companies still could generate interest among traders. Among which we note Unilever, Siemens and Airbnb tomorrow Thursday, Moderna on Friday, BHP on Monday, Baidu on Tuesday and HSBC and Rio Tinto on Wednesday. <\/p>\n\n\n\n

An\u00e1lisis t\u00e9cnico<\/u><\/strong><\/h2>\n\n\n\n

Tesla Daily Chart<\/strong><\/h2>\n\n\n\n
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