US Session: Why Are Indexes and Stocks Falling?

The recent declines in indexes and stocks are the result of several key factors that are causing concern in the markets.

1. Trade and Political Risks

Trade uncertainty remains a major concern for traders. News about tariffs and new trade barriers, either implemented or expected from the Trump administration, are increasing market volatility. Indexes are reacting to these developments with sell-offs as companies worry about the impact on supply chains and profitability.

2. High Interest Rate Expectations

Markets are concerned that the Federal Reserve will maintain or even raise interest rates in response to the strong labor market. These expectations are driving indexes and stocks lower, as traders shift away from risky assets in favor of safer investments like bonds, which are appreciating in value.

3. Tech Stocks in the Red

Technology stocks, which have been a major market driver recently, are now under pressure. Nvidia and Marvell Technology have disappointed traders with their earnings results and forecasts, contributing to the decline. Additionally, traders are beginning to realize that short-term AI profits may not meet expectations, leading to a mass sell-off.

What to Expect Tomorrow?

1. Expectations for the Employment Report

Friday’s (March 9) employment report is a key factor that could determine the market’s future direction. If job growth data exceeds expectations, the Federal Reserve is likely to keep interest rates high, leading to further stock declines. In that case, indexes could experience an additional sell-off. However, if the data suggests slowing employment growth, it could signal that the Fed might lower rates, creating a more favorable environment for the stock market.

2. Crypto and the Impact of Trump’s Meeting

At the same time, cryptocurrencies like Bitcoin are experiencing strong fluctuations ahead of Trump’s upcoming crypto meeting tomorrow. If the event includes announcements about tax policy relief for cryptocurrencies, this could lead to a short-term BTC price surge. However, if the Federal Reserve maintains high interest rates and financial volatility remains elevated, the crypto market may follow the general negative trend of stocks.

What to Expect?

Given the current situation, the main risks for the markets stem from uncertainty surrounding U.S. trade and interest rate policies. The most likely scenario is continued volatility and declines in indexes and stocks as markets await the crucial employment report. Strong labor market data could increase pressure on the stock market and trigger further sell-offs of risk assets.

At the same time, crypto assets like Bitcoin may see short-term gains due to political news, but if market uncertainty persists, this may not materialize.