The Fastest Trade War In History

Trump's tariff tantrum, Palantir's push past $100, Eric Trump's crypto pump, and more from the day.

NEWS
The Fastest Trade War In History

Source: Tenor.com

The days are long, but the trade wars are short. At least, that’s how we think the saying goes. Nevertheless, the market turned lower as futures opened on Sunday but found some stability during regular trading hours as Trump’s tariff standoff with Mexico and Canada reached a short-term conclusion. Meanwhile, earnings continue to dominate the conversation as investors look for a catalyst to keep the market moving higher. 👀 

Today's issue covers the North American trade war of 2025, Palantir’s push above $100, Eric Trump’s crypto pump, and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 6 of 11 sectors closed green, with energy (+0.63%) leading and technology (-1.35%) lagging.

Source: Finviz.com

And here are the closing prices: 

S&P 500

5,995

-0.76%

Nasdaq

19,392

-1.20%

Russell 2000

2,258

-1.28%

Dow Jones

44,422

-0.28%

POLICY
Mexico & Canada Fold After U.S. Flexes 💪 

Stocks sold off on Friday as President Trump imposed a 25% tariff on Canada and Mexico, enacting the rule way earlier than anticipated. Over the weekend, both countries retaliated with their own tariffs, causing stocks and other risk assets to plummet sharply on Sunday evening when the futures markets opened.

The market traded sideways for most of the pre-market session and looked like it was set to make fresh lows shortly after the open. However, a discussion with Mexican president Claudia Sheinbaum led to a monthlong pause of both countries' tariffs after they agreed on steps to reinforce border security. 🗺️ 

Later in the day, Canadian Prime Minister Justin Trudeau announced the implementation of a $1.3 billion border plan, increasing resources to stop the flow of fentanyl. The country is also making new commitments to appoint a Fentanyl Czar, use $200 million for a new intelligence directive on organized crime, and more. 🚨 

And just as quickly as it began, the North American trade war of 2025 was over. But not without lots of volatility to chop up traders and investors in the process. Proposed tariffs from all countries will be paused for at least 30 days as discussions continue. However, this situation signals what most of us already knew: volatility will likely remain elevated in 2025 as the new administration implements its proposals in classic Trump fashion…with optics at the forefront of every decision.

Time will tell how this specific situation plays out. But for now, other countries are on notice…allies or otherwise. Trump’s tariffs are here, and everyone’s fair game. 😨 

And if you’re worried that the 24/7 newsflow will mess up your portfolio, don’t fret because another exchange is working to expand its U.S. equity trading hours. The CBOE announced plans to make U.S. equity trading 24/5, beginning the regulatory process to follow the New York Stock Exchange and others that are looking to expand trading hours to meet rising demand.

As for America’s investments, Trump signed an executive order outlining plans for a government-run sovereign wealth fund to serve as an economic development tool (and maybe buy TikTok). We’ll see if the crypto industry gets its wish for a strategic Bitcoin reserve, but this could be a step towards more investment in the space. 🪙 

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