This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
U.S. President Donald Trump threatened on Wednesday to impose a 25% tax on the European Union and warned Thursday he would approve tariffs on Canada and Mexico, which are now on hold.
These are some of the United States’ most important trading partners and closest allies. If the tariffs are imposed, anticipate economic repercussions and geopolitical conflict.
Some of the consequences may have already started. The U.S. jobless claims for the week ending February 22 increased more than anticipated and reached their highest level since early October.Â
Although these cost-cutting efforts may not have been a direct response to tariffs, the layoffs announced by major tech companies like Google, Microsoft, and Meta this year are an early indication of what businesses might face when attempting to cope with rising import prices.
It’s also possible that Nvidia is looking down the barrel. Taiwan-based TSMC produces the majority of Nvidia’s cutting-edge AI chips. During his campaign trail, Trump claimed that Taiwan had stolen the American chip industry and threatened to tax Taiwanese chips.
Following the chipmaker’s earnings announcement on Wednesday, Nvidia’s stock fell sharply on Thursday, wiping away billions of dollars in market capitalisation. The situation will appear considerably worse if duties are imposed on Taiwan, not just for the chipmaker.
What To Note Today
Nvidia’s Worth Drops By $273 Billion
On Thursday, Nvidia’s stock fell 8.5%, wiping off $273 billion in value and leaving the business with a $2.94 trillion market valuation. Apple is now the sole company in the $3 trillion club. Due to investor concerns about export restrictions, tariffs, more effective artificial intelligence models, and a generally slower growth rate, Nvidia’s stock has dropped 10% in value thus far in 2025.
Trump Declares That Tariffs Will Proceed
In a Thursday morning post on Truth Social, U.S. President Donald Trump announced that his proposed 25% tariffs on Canada and Mexico would take effect on March 4. On the same day, he added that China would be subject to an additional 10% tariff on top of the ones it already faces. Trump also stated that on April 2, reciprocal tariffs would be imposed on the United States’ international trading partners. Trump, meanwhile, threatened to levy a 25% tariff on the EU.
Markets Decline Due To Nvidia And Tariffs
On Thursday, Nvidia’s stock fell sharply, and tariff fears rocked U.S. markets. The Dow Jones Industrial Average declined 0.45%, the Nasdaq Composite plummeted 2.78%, and the S&P 500 fell 1.59%. The auto industry’s 4% decline in response to Trump’s threat of tariffs on the EU hurt the pan-European Stoxx 600 index, which fell 0.46%. Rolls-Royce’s aerospace and defense company’s shares surged 16% on positive guidance.
Unexpectedly High Unemployment Claims
A U.S. Labour Department data on Thursday showed that unemployment claims in the United States for the week ending February 22 reached a seasonally adjusted 242,000, up 22,000 from the previous week’s revised amount and more than the Dow Jones estimate of 225,000. Amid concerns about overall economic development and concerning indicators in recent consumer sentiment surveys, the number of claims reached its highest level since early October 2024.
Google Reduces Employment
CNBC has learned that Google informed employees in its cloud unit, human relations division, and “People Operations” this week that layoffs are planned as part of internal reorganizations. According to sources and internal documents, CNBC shows some impacted employees’ positions in Google’s cloud division are being moved to Mexico City and India. It’s unclear how many people will be laid off.
Analysts Predict Gold Might Reach $3,000
In recent years, central banks worldwide have been accumulating gold, pushing the precious metal to all-time highs. According to economists, bullion may soon hit $3,000 for the first time due to ongoing geopolitical tensions, inflation, and trade worries.Â
Investors can be exposed to gold in many ways, each with its costs and hazards.
Additional Updates
As Qatar seeks to diversify away from its hegemonic oil and gas sector, the $1 billion fund-of-funds initiative of the Qatar Investment Authority, which invests in international and regional venture capital funds, is intended to support investments in sectors including technology and healthcare.
It has now approved its initial round of venture capital fund managers. The tech-focused company B Capital, managed by Eduardo Saverin, a co-founder of Facebook, is one of the venture capitalists scheduled to create its first Middle East office in Qatar’s capital. According to Raj Ganguly, co-CEO of B Capital, the Gulf state’s attitude to artificial intelligence and its support for the field are of particular importance.
