As the financial markets continue to navigate a landscape marked by uncertainty, stock futures are currently experiencing a slight increase. This trend comes as investors eagerly await critical updates on tariffs that could significantly influence economic dynamics. With trade policies remaining a focal point of discussion among policymakers, market participants are keenly analyzing any developments that may impact corporate earnings and overall market stability.
Stock futures are experiencing a slight increase as investors anticipate updates on tariffs
Stock futures climbed slightly on Monday amid ongoing uncertainty regarding President Donald Trump’s plan to impose tariffs on significant U.S. trading partners this week.
Futures for the Dow Jones Industrial Average rose by 58 points, or 0.1%. S&P 500 futures increased by 0.3%, and Nasdaq-100 futures gained 0.4%.
Commerce Secretary Howard Lutnick stated on Fox News Sunday that the specific tariff rates on Mexico and Canada starting Tuesday are still “fluid,” suggesting it could be less than the proposed 25%. He also noted that the additional 10% duty on imports from China is “set.”
Treasury Secretary Scott Bessent mentioned on CBS that Mexico has offered to reciprocate the U.S. tariffs on China, potentially as a means to negotiate against Tuesday’s tariffs.
The uncertainties surrounding Trump’s trade measures have resulted in heightened market volatility recently, with all three major averages posting negative returns for the month. The S&P 500 fell 1.4% in February, the Dow decreased by 1.6%, and the tech-focused Nasdaq Composite lagged with a 4% loss, representing its worst month since April 2024.
Meanwhile, cryptocurrencies soared on Sunday after Trump announced the establishment of a strategic crypto reserve for the U.S., which will include bitcoin and ether. Bitcoin surged 10% to almost $94,000 after having dipped to a three-month low below $80,000 on Friday.
This eventful week also features the vital February jobs report set for release on Friday, which is anticipated to reveal that fewer jobs were created.
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As the tariff deadline approaches, Treasury yields slightly increase
U.S. Treasury yields increased on Monday as traders sought more insight into President Donald Trump’s tariff proposals.
At 5:42 a.m. ET, the benchmark 10-year Treasury yield rose by 2.5 basis points to 4.252%. The 2-year Treasury yield climbed nearly 4 basis points to 4.034%.
One basis point equates to 0.01%, and typically, yields and prices move inversely.
Trump’s tariff initiatives are back in the spotlight this week, with 25% tariffs on imports from Canada and Mexico set to take effect on Tuesday.
Traders have voiced worries regarding the potential impact of tariffs on the economy, especially after legendary investor Warren Buffett made rare remarks critiquing Trump’s policies over the weekend.
Buffett, the chairman and CEO of Berkshire Hathaway, described tariffs as “an act of war, to some degree” and warned they could lead to inflation and negatively affect consumers.
Investors are also looking for insights into business activity within the manufacturing sector, with the S&P Global Manufacturing PMI report and ISM Manufacturing PMI report scheduled for release on Monday at 10 a.m. ET, which will provide indications about the U.S. economic outlook. For both reports, a reading above 50 indicates expansion, while a reading below 50 suggests contraction.
Trump has disclosed a strategic cryptocurrency reserve consisting of bitcoin, Solana, XRP, and other digital assets
Cryptocurrencies saw a significant uptick on Sunday following President Donald Trump’s announcement regarding the establishment of a strategic crypto reserve for the United States. This reserve is set to encompass bitcoin, ether, XRP, Solana’s SOL token, and Cardano’s ADA.
“A U.S. Crypto Reserve will boost this essential industry after enduring years of corrupt opposition from the Biden Administration. This is why my Executive Order on Digital Assets instructed the Presidential Working Group to advance the creation of a Crypto Strategic Reserve that includes XRP, SOL, and ADA,” he stated in a post on Truth Social. “I am committed to ensuring that the U.S. becomes the Crypto Capital of the World.”
“And naturally, BTC and ETH, as other significant cryptocurrencies, will be central to the Reserve,” he added in a subsequent post. “I also have a great appreciation for Bitcoin and Ethereum!”
Following the announcement, XRP skyrocketed by 33%, while Solana’s token surged 25%. Cardano’s cryptocurrency soared over 60%.
Bitcoin climbed 10% to $94,343.82 after previously dipping to a three-month low below $80,000 on Friday. Ether, experiencing some of the steepest declines in crypto so far this year, rose by 13%.
Trump will host the inaugural White House Crypto Summit on Friday, and investors are keenly awaiting further insights regarding the reserve’s future plans.
This marks the first occasion Trump has clarified his support for a crypto “reserve” rather than a “stockpile.” The former entails regularly purchasing crypto, while a stockpile would simply refrain from selling any crypto the U.S. government already owns.
Trump initially proposed the notion of a bitcoin stockpile, aimed at holding “100% of all the bitcoin the U.S. government currently possesses or will acquire” during last summer’s Bitcoin 2024 event in Nashville, a major conference in the industry where he began courting the crypto electorate. At the same gathering, Wyoming Senator Cynthia Lummis proposed her vision for a national strategic bitcoin reserve.
Following his re-election in November, the call for a strategic bitcoin reserve intensified, propelling the flagship cryptocurrency to new all-time highs. However, momentum appeared to wane after Trump issued his executive order on crypto in late January, which directed the President’s Working Group to assess the “potential creation and maintenance of a national digital asset stockpile, possibly derived from cryptocurrencies legally seized by the Federal Government through its law enforcement actions,” among other objectives.
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Nvidia and Broadcom are conducting chip testing using the Intel manufacturing process
Chip manufacturers Nvidia and Broadcom are conducting manufacturing trials with Intel, according to two sources familiar with the situation who spoke to Reuters, signaling early faith in the beleaguered company’s advanced production capabilities.
These previously unreported tests suggest that the firms are nearing a decision on whether to invest hundreds of millions of dollars in manufacturing contracts with Intel. Such a commitment could bring a significant revenue boost and validation for Intel’s contract manufacturing division, which has faced challenges, including delays and a lack of high-profile chip design clients.
Advanced Micro Devices is also assessing whether Intel’s 18A manufacturing process meets its requirements, but it remains unclear whether AMD has submitted test chips for evaluation. AMD chose not to comment on the matter.
An Intel representative stated, “We don’t discuss specific customers, but we continue to see strong interest and engagement in Intel 18A across our ecosystem.”
The trials by Nvidia and Broadcom are leveraging Intel’s 18A process, a collection of technologies and methodologies refined over years capable of producing advanced artificial intelligence processors and other intricate chips. The 18A process competes with similar offerings from Taiwan’s TSMC, which currently leads the global chip industry.
Nvidia opted not to provide comments, and Broadcom did not reply to a request for information.
These tests focus not on complete chip designs but rather on assessing the performance and capabilities of Intel’s 18A process. Chip designers often procure wafers to evaluate specific chip components and iron out issues prior to committing to high-volume production of a complete design.
Testing is ongoing and may take several months. The exact start date of the tests remains unknown.
However, these manufacturing trials do not guarantee Intel will secure new business. Last year, Reuters reported that some Broadcom tests underwhelmed its executives and engineers, leading Broadcom to continue evaluating Intel’s foundry capabilities.
This early support comes amidst potential delays in Intel’s delivery of chips to certain contract manufacturing clients reliant on third-party intellectual property, as indicated by two additional sources along with documents reviewed by Reuters.
The success of Intel’s contract manufacturing operations was central to former CEO Pat Gelsinger’s strategy for revitalizing the once-iconic American tech giant. Gelsinger was dismissed by the board in December.
The interim co-CEOs shelved an upcoming artificial intelligence chip, pushing back prospects for a competitive AI chip from Intel until at least 2027.
Intel’s challenges have attracted attention from the U.S. administration, particularly under President Donald Trump, who is eager to restore American manufacturing capabilities and counter Chinese influence. Intel is viewed as the U.S.’s best chance to produce the most advanced semiconductors domestically.
Earlier this year, officials from the administration met in New York with C.C. Wei, CEO of Taiwan’s TSMC, regarding a potential majority stake in a joint venture involving Intel’s manufacturing unit, according to a source familiar with the discussions. These talks encompassed the prospect of involving other chip designers as equity partners in the new venture.
TSMC did not comment on the matter, and Intel has not addressed queries about these meetings.
Intel has reported signing agreements with Microsoft and Amazon.com to create chips using the 18A process, but specifics remain scant. Intel has not revealed the chip Microsoft intends to produce at its factories or details regarding Amazon’s specific plans, nor is it clear how much manufacturing volume each agreement entails.
