Day Traders Diary

2/3/25

The major averages rebounded off the lows, but finished in the red as the pending trade tariffs with Canada, China and Mexico persist. The Dow Jones Industrial Average fell 122 points, or 0.28%, after opening down 665 points. The S&P 500 fell 45 points or 0.76% while the Nasdaq Composite fel 235 points or 1.38%.

Following the open the averages rebounded as the tariffs on Mexico have been paused for at least a month after Trump spoke to their leader getting concessions to deploy 10,000 troops to the Southern border to slow or stop the immigration problem along with the flow of drugs including fentanyl into our country.

Plenty of stocks with sales into Mexico and Canada got hit today including the large auto stocks, Ford and GM, the large agriculture stocks like Caterpillar and Deere along with food and beverage stocks like Constellation Brands.

Tech stocks also took a hit including Apple, Nvidia and Tesla all down 3% or more.

The selling off in the rest of the markets was more muted today.

The 10-year Treasury yield fell 3 basis points to 4.53%, while the 2-year Treasury yield fell a basis point to 4.25% on the trade tariff concerns.

Oil was quiet today as OPEC is expected to keep oil production stable. Gold was higher today as a safe-haven for inflation if the tariffs take hold. Bitcoin sold off sharply over the weekend and this morning before rebounding into the green by the end of the day.