Market developments
Equities: The Nasdaq Index had its worst week of 2025, dropping over 5% as growth concerns and high valuations led to the selling of the “Mag7”. While Nvidia reported a strong quarter this week, the earnings beat and guidance were not enough for investors, with the stock ending the week down more than 7%. Any recovery attempt on Friday was halted as tensions flared during a meeting between the U.S. and Ukraine.
Fixed Income: Treasury yields declined, and the US dollar strengthened. Market optimism over Federal Reserve rate cuts faded as uncertainty grew. Meanwhile, Canada’s bond market faces volatility due to potential tariffs set to begin on March 4, which could impact interest rate expectations and yield spreads.
Commodities: Gold had its worst week of the year amid concerns over President Trump’s tariff agenda. This correction in gold wasn’t unexpected as it was on an eight-week positive streak.