Market Trends: Stocks Decline, Oil Dips, and Bitcoin Surges

Image Source : Krish Capital Pty Ltd

Index Update

On Tuesday, the Dow fell 1.55%, the S&P 500 dropped 1.22%, and the Nasdaq declined 0.35%. Ten of the 11 S&P sectors saw losses, led by financials, industrials, and consumer staples, while the tech sector outperformed due to gains in chipmakers and crypto stocks. Investors now await Trump’s address to Congress for insights on US trade policy.

Market Movers

On Tuesday, the top gainers were 908 Devices Inc. (+78.79%), followed by Jiayin Group Inc. (+25.46%). On the contrary Viant Technology Inc. (-31.09%) and ACELYRIN, INC. (-15.61%) declined the most the same day.

Commodities Update

WTI crude oil futures fell below $68 per barrel, nearing a three-month low, as concerns over OPEC+ production increases weighed on prices. OPEC+ confirmed plans to phase out 2.2 million bpd in output cuts from April. Additional pressure came from the Trump administration suspending US military aid to Ukraine and potential sanctions relief for Russia, which could boost Russian oil exports. New US tariffs on Canada, Mexico, and China also raised concerns about disrupted crude flows and weaker demand. Meanwhile, US crude inventories fell by 1.5 million barrels, exceeding expectations, and Chevron’s license to operate in Venezuela may be revoked.

Macro Update

The dollar index fell 0.8% to 104.8, a four-month low, amid concerns over the economic impact of new US tariffs. A 25% tariff on Canadian and Mexican imports and a 10% levy on Chinese goods took effect, prompting retaliatory measures. Commerce Secretary Howard Lutnick hinted at possible tariff relief for North American goods. US economic concerns grew as the ISM Manufacturing PMI signaled a slowdown and inflationary pressures rose. Meanwhile, the euro strengthened after Germany’s CDU/CSU and SPD agreed to increase spending.

Futures Update

US stock futures rose Wednesday after Commerce Secretary Howard Lutnick suggested a possible tariff compromise between the US, Canada, and Mexico. This follows Trump’s newly imposed tariffs—25% on Canadian and Mexican goods and 10% on Chinese imports—which triggered retaliatory measures and raised fears of a global trade war and economic slowdown.

On March 5th, Bitcoin traded at $89,727, rising 2.82% (+$2,464) from the previous session. Over the past four weeks, it gained 6.90%, and over the last 12 months, its price surged 34.99%.

After a sharp decline early in the session, stocks attempted a notable recovery throughout the trading day on Tuesday, only to face renewed pressure as the market approached the close. The tech-heavy Nasdaq finished down 65.03 points, or 0.4%, at 18,285.16, having dropped as much as 2.1% to reach a nearly five-month intraday low. The S&P 500 briefly entered positive territory but ultimately closed down 71.57 points, or 1.2%, marking a four-month closing low of 5,776.14. The S&P 500 is currently hovering near crucial support levels, which may limit upside potential in the short term. The 14-period RSI is below the midpoint, suggesting a potential upside pullback, while the key resistance level to watch is 5,950, with support around 5,600.