Overnight Market Movements and U.S.-Canada Trade Updates: Bitcoin Rebounds Above $100,000
U.S. Stocks Narrow Their Losses
The three major U.S. stock indexes opened lower but ended the session higher, with the Nasdaq down 1.2%. The index had initially fallen by over 2% in early trading. The S&P 500 and Dow also ended the day in the red, losing approximately 0.7% and 0.28%, respectively.
Large tech stocks saw significant declines, with Tesla and Apple falling more than 5%, Nvidia dropping over 3%, and both Google and Microsoft slipping by over 2%. Amazon saw a slight decline, while Intel was down modestly. Conversely, Meta gained more than 1%, and Netflix recorded a small uptick.
Atlanta Fed President Bostic remarked that the Fed’s response to tariff impacts would depend on inflation data, which is expected after the March FOMC meeting. Fed President Collins stated that there was no urgent need to adjust interest rates.
Chinese Stocks Struggle
Popular Chinese stocks mostly ended lower, with the Nasdaq China Golden Dragon Index dropping 0.53%. Pinduoduo, Shell, and iQIYI each saw declines greater than 5%, while Futu Holdings, Baidu, and Tencent Music fell over 3%. JD.com and Manbang dropped by more than 1%, while NIO and Alibaba saw only minor losses. On the positive side, Kingsoft Cloud and Xpeng Motors surged by over 20%, and Ctrip gained more than 3%. The broader internet sector gained 2%.
Bitcoin Surges Back Above $100,000
Bitcoin experienced notable volatility, but it surged above the $100,000 mark once again. Over the past 24 hours, more than 510,000 traders had their positions liquidated as the market saw sharp fluctuations.
U.S. Trade Relations: Tariff Suspensions and Diplomacy
U.S. and Canada Agree to Suspend Tariffs for 30 Days
U.S. President Trump announced on February 3rd that additional tariffs on Canadian products would be suspended for 30 days. This move aims to pave the way for a final economic agreement. In response, Canadian Prime Minister Trudeau confirmed that Canada would also suspend retaliatory tariffs.
Trump and Mexico Postpone Tariff Increases
Also on February 3rd, President Trump revealed that the U.S. and Mexico had agreed to postpone planned tariff increases for one month, continuing negotiations. Trump tweeted about a friendly conversation with Mexican President Sheinbaum, mentioning Mexico’s commitment to deploying 10,000 soldiers to its border to combat fentanyl trafficking and illegal immigration.
U.S. Foreign Policy Moves: Executive Orders and Agency Review
Trump Expected to Withdraw from the UN Human Rights Council Again
Reports indicate that U.S. President Trump is poised to issue an executive order on February 4th to withdraw the U.S. from the United Nations Human Rights Council, marking a continuation of the 2018 decision under his administration. The order would also bar U.S. funding to the UNRWA, the United Nations agency for Palestinian refugees.
State Department Shuts Down USAID as It Reviews Operations
The U.S. State Department announced the closure of the U.S. Agency for International Development (USAID) as part of a review process to align its operations with the “America First Agenda.” The closure also includes restrictions on USAID staff entering its Washington headquarters.
