Overnight US stocks | The S&P 500 index erased the gains since the US election, and NVIDIA Corporation (NVDA.US) fell more than 8%.

On Thursday, the three major indexes plummeted, with the S&P 500 wiping out gains since the U.S. election. Former President Trump posted on Truth Social stating that proposed 25% tariffs on Mexico and Canada will take effect on March 4th, as these two countries have not fully curbed the flow of drugs across the border. Trump also added that in addition to the already implemented 10% tariffs, an extra 10% tariff will be imposed on China. US StockAt the close, the Dow fell 193.62 points, a decrease of 0.45%, to 43,239.50 points; the Nasdaq dropped 530.84 points, a decrease of 2.78%, to 18,544.42 points; the S&P 500 index declined 94.49 points, a decrease of 1.59%, to 5,861.57 points. Chip stocks were hit hard, with NVIDIA Corporation (NVDA.US) falling by 8.4% and Broadcom Inc. (AVGO.US) falling by 7%. Tesla, Inc. (TSLA.US) dropped by 3% and MicroStrategy (MSTR.US) fell by over 8%. The Nasdaq Golden Dragon Index fell by 0.9%, and Alibaba Group Holding Limited Sponsored ADR (BABA.US) dropped by 1.7%. European StocksGermany's DAX30 index fell by 254.65 points, a decrease of 1.12%, to 22,542.76 points; the UK's FTSE 100 index rose 25.41 points, an increase of 0.29%, to 8,756.87 points; France's CAC40 index dropped 41.40 points, a decrease of 0.51%, to 8,102.52 points; the Euro Stoxx 50 index declined 58.20 points, a decrease of 1.05%, to 5,472.35 points; Spain's IBEX35 index dropped 66.70 points, a decrease of 0.50%, to 13,269.60 points; Italy's FTSE MIB index fell 592.71 points, a decrease of 1.51%, to 38,632.00 points. Asia-Pacific Stock MarketsThe Nikkei 225 index rose by 0.3%, the KOSPI index in South Korea fell by 0.73%, and Indonesia's Composite index dropped by 1.83%. Foreign ExchangeThe US Dollar Index, which measures the dollar against six major currencies, rose by 0.78% and closed at 107.244 in the foreign exchange market at the end of the day. At the end of the New York foreign exchange market, 1 euro exchanged for 1.0404 US dollars, lower than the previous trading day's 1.0491 US dollars; 1 pound exchanged for 1.2608 US dollars, lower than the previous trading day's 1.2684 US dollars. 1 US dollar exchanged for 149.87 Japanese yen, higher than the previous trading day's 148.85 Japanese yen; 1 US dollar exchanged for 0.8996 Swiss francs, higher than the previous trading day's 0.8938 Swiss francs; 1 US dollar exchanged for 1.4441 Canadian dollars, higher than the previous trading day's 1.4333 Canadian dollars; 1 US dollar exchanged for 10.7467 Swedish Krona, higher than the previous trading day's 10.6425 Swedish Krona. CryptocurrencyBitcoin remained relatively stable at $84,298.53. GoldSpot gold fell by 1.34% to $2,877.24 per ounce, fluctuating downward throughout the day and experiencing a significant decline after the opening of the US stock market at 22:30 Beijing time. COMEX gold futures dropped by 1.48% to $2,887.30 per ounce, traded in the range of $2,935.80-2,879.00 per ounce. Spot silver fell by 1.86% to $31.2630 per ounce, also experiencing a significant decline in the early US stock market session. COMEX silver futures May contract declined by 2.24% to $31.845 per ounce. COMEX copper futures May contract rose by 0.17% to $4.5945 per pound, touching a daily high of $4.6685 per pound at 21:45. Crude OilOil prices saw the largest increase in six weeks. WTI rose by approximately 2.5%, closing above $70 per barrel, after an earlier post by Trump stating proposed tariffs on Canada and Mexico will take effect on March 4th. "How Donald Trump's political and economic agenda will affect economic growth is not yet clear," said PVM analyst Tamas Varga. "Equal tariffs, tax cuts, and spending cuts could increase inflation pressure and weaken economic growth." Macro News U.S. fourth-quarter economic growth slowed down. The US Bureau of Economic Analysis (BEA) reported in its second estimate of GDP for the fourth quarter that the annualized growth rate was 2.3%, following a faster growth rate of 3.1% in the quarter from July to September 2024 (i.e. the third quarter). The data indicated a significant slowdown in GDP growth from the previous quarter. Economists surveyed earlier had expected the US fourth-quarter GDP growth to remain unchanged. The upward revision in GDP growth was less than 0.1 percentage points, rounding off to the same 2.3% growth rate from the previous month. Fed's Harker: Policy rate should remain on hold until situation becomes clearer. Philadelphia Fed President Harker stated on Thursday that tariffs or trade wars could lead to inflation, and a decrease in workforce could also lead to inflation, but due to many uncertainties depending on the actual policy details of the Trump administration, the Federal Reserve should currently maintain interest rates. Harker said, "If there's no major change in the trend of inflation in the upcoming data, I think it's appropriate to maintain it for a while at the current level and let some uncertainties resolve themselves." Cleveland Fed President Mester: Rates not significantly restrictive, stock market valuations high. Federal Reserve hawkish official, Cleveland Fed President Mester, stated that rates are not significantly restrictive and should remain stable for a period. In other words, we may be approaching a neutral environment. Over the long term, the US economy is resilient and will adapt to a higher rate environment, given the widespread loose financial environment and high stock market valuations, with stock risk premiums close to zero. Her comments align with the remarks made by Fed Chair Powell last month.Different opinions clash. He has stated that even after last year's interest rate cut, interest rates still have substantial constraints. Hamaack also stated that a patient approach will give us time to monitor the labor market and inflation trajectory, as well as the overall performance of the economy in the current interest rate environment. It is important to monitor inflation expectations and other indicators to assess whether the financial situation is in line with the Fed's anti-inflation efforts. Following his remarks, the US stock market extended its decline, with the Nasdaq falling over 2.3% at the close. Hamaack is a voting member of the FOMC next year.Trump: The US and UK are in negotiations for a trade deal. President Trump and visiting UK Prime Minister Stamer held a meeting. After the meeting, a joint press conference was held. Regarding the US-UK trade and cooperation, Trump stated that the US and UK are negotiating a bilateral trade agreement. Trump said that the two sides will reach a "great trade agreement" and ultimately a very good agreement for both countries, and they are working towards this, expecting to reach the agreement with the UK soon. Stamer stated that the two countries have begun to develop a new economic agreement centered around advanced technologies such as artificial intelligence to strengthen their trade relations. As for Trump's recent threats to impose tariffs on other countries, Trump said that he and Stamer discussed US tariffs on the UK, and Stamer tried to convince him not to impose tariffs on the UK. Trump also stated that there is no need to impose tariffs on the UK if a trade agreement is reached. Canadian Prime Minister: Will strongly respond if the US imposes tariffs. Canadian Prime Minister Trudeau stated that if the Trump administration continues to implement "unreasonable tariff policies," Canada is prepared to respond strongly. Trudeau stated that Canada is working to avoid large-scale US tariffs, but if their tariff measures are implemented as planned, Canada will respond strongly. Trudeau said that imposing tariffs would be difficult for Canadians and Canadian businesses, but also difficult for Americans and American businesses. Canadian media predicts that once Trump's threatened tariff measures take effect, Canada will resume retaliation plans for tariffs on American goods. Previously, Canadian Prime Minister Trudeau announced a 25% tariff on US goods worth $155 billion to respond to US tariffs on Canadian products. The US Treasury Department has reduced the issuance size of 6-month treasury notes for the third consecutive week. The US Treasury Department on Thursday cut the bid size for 6-month treasury notes for the third consecutive week as the government seeks to preserve borrowing space within the statutory debt limit. The Treasury Department plans to issue $70 billion in 6-month treasury notes on Tuesday, a $5 billion reduction from the previous issuance size of the same type. The issuance sizes of 3-month and 6-month treasury notes issued on Monday remained the same at $76 billion and $68 billion, respectively. The Treasury Department also plans to issue $40 billion in 12-day cash management bills on Tuesday. Stock News Meta (META.US) plans to launch an independent AI app in the second quarter and explore paid subscriptions. According to sources, Meta Platforms plans to release a standalone Meta AI APP in the second quarter. The Meta AI chatbot Siasun Robot&Automation was launched in September 2023, with the company positioning it as a generative AI digital assistant that can provide responses and create images based on user prompts in existing applications. The company also plans to test a paid subscription service for Meta AI, similar to the way OpenAI and Microsoft Corporation charge users a monthly fee. Meta's CFO stated in January that while Meta AI is focused on creating a great consumer experience, there are significant profit opportunities over time, including paid recommendations and premium services. US media: Tesla, Inc. (TSLA.US) plans to launch a free Robotaxi in California. According to foreign reports, Elon Musk's Tesla, Inc. is preparing to launch a taxi (Robotaxi) service in California, where paying passengers may eventually be able to ride in self-driving cars throughout the state. An email shows that Tesla, Inc. submitted an application to the California Public Utilities Commission at the end of last year to use its vehicles to transport passengers. The company is currently approved to test autonomous vehicles in the state, but if additional permits are obtained, people will be able to call for Tesla, Inc.'s taxis for free.