• Markets hit Kangaroo turf. Trade tensions weighed on the market as the S&P 500 fell for the third week in a row and posted its steepest weekly decline since September of 2024. The index recorded a -3.1% total return for the week while the NASDAQ saw a -3.4% result and the Dow fell 2.3%. Stocks have now entered into a kangaroo market, or one that is both unpredictable and aggressive in nature.
• NASDAQ entered correction territory. The NASDAQ saw its index fall more than 10% below a high reached a couple weeks earlier.
• Trade conflicts escalated. Trade conflicts hammered the financial markets, as the United States imposed 25% tariffs on most goods from Canada and Mexico on Tuesday while also boosting existing duties on Chinese imports. 
• The February job report data came in. February’s gain of 151,000 jobs came in slightly below most analysts’ expectations. It was still a modest increase from the previous month’s adjusted figure of 125,000. 
• Inflation concerns remained. Federal Reserve Chairman Jerome Powell echoed the market's concern over "uncertainty" tied to tariff and economic policies but noted that solid labor markets and easing inflation pressures likely mean the central bank remains in "no hurry" to change its key policy rate.
• China's consumer inflation turned negative. China’s national consumer price index (CPI) in February fell into negative territory for the first time since January last year, according to data published Sunday by the National Bureau of Statistics.
• Tesla shares dragged lower. The electric vehicle maker's stock has declined every week since CEO Elon Musk went to Washington.
• European stocks climbed on rate cuts. On Thursday the European Central Bank approved a rate cut for its sixth policy meeting in a row. 
• Bitcoin dropped again. President Donald Trump signed an executive order on Thursday establishing a national crypto reserve. The cryptocurrency tumbled 6%. 
• The dollar went lower. A measure of the U.S. dollar’s value relative to a basket of other major currencies was down 2.4% for the week as of Friday afternoon—the dollar’s biggest weekly decline since November 2022. In contrast, the euro was posting its biggest weekly gain versus the dollar since 2009 after European governments announced plans for increased stimulus spending.
• Manufacturing indexes reflect continued expansion. The final S&P U.S. Manufacturing Purchasing Managers Index (PMI) for February rose to 52.7, above estimates and the highest reading since 2022. 
• An index of U.S. large-cap growth stocks lagged its value counterpart by a wide margin. The growth index closed down 3.9% for the week on a total return basis while a value index fell 2.4%.
• WTI oil prices rose 1% to $67 on Friday. Prices were still down more than 3% for the week after OPEC's plan to hike output in April.
• Investors await the Consumer Price Index report. The report is scheduled for release on Wednesday and will show whether a recent trend of slightly hotter-than-expected inflation extended into February. The most recent CPI report showed an annual core inflation rate of 3.3% in January, coming in above economists’ consensus forecast and slightly above the previous month’s annual figure.   

• Nvidia (NVIDA)
• Ford Motor Co. (F)
• Palantir Technologies (PLTR)
• Tesla (TSLA)
• Walgreens Boots Alliance (WBA)

Biggest Gainers

• The Gap (GAP) +18.84%
• LandBridge Company (LB) +10.10%
• Rigetti Computing (RGTI) +9.87%
• e.l.f. Beauty (ELF) +9.72%
• TG Therapeutics (TGTX) +9.24%

Biggest Losers

• Samsara (IOT) – 15.57%
• Hewlett Packard (HPE) – 11.97%
• Reddit (RDDT) – 11.11%
• Tonix Pharmaceuticals (TNXP) –11.00%
• Klaviyo (KVYO) -9.51%

Weekly Notables

FAA Stopped Flights to Many Florida Airports After SpaceX Failure

The Federal Aviation Administration briefly halted flights to several Florida airports after SpaceX’s Starship exploded in space. This is the second time this year that SpaceX experienced a mishap during a flight test of Starship resulting in debris raining down and commercial flights disrupted. The company is working on a mishap investigation into what caused the earlier incident but was allowed by the FAA to proceed with the new test flight before completing the inquiry.

Retailer Costco reported an earnings miss on Thursday but beat expectations for revenue for the second quarter as quarterly comparable sales rose. CEO Ron Vachris said although it’s difficult to forecast the impact of tariffs, the company aims to minimize cost increases for members. A third of its U.S. sales are from imports, he said, and less than half of those come from China, Mexico and Canada. “In uncertain times, our members have historically placed even greater importance on the value of high-quality items at great prices, and our teams will continue to rise to this challenge by leveraging our global buying power, strong supplier relationships and innovation,” Vachris said.

The Week Ahead

• Potential market moving catalysts this week: On Monday and Tuesday there will be no reports. On Wednesday investors can expect the Consumer Price Index (CPI), Core CPI, EIA Crude Oil Inventories, MBA Mortgage Applications Index, and Treasury Budget. On Thursday we will get data from the Producer Price Index (PPI), Continuing Claims, EIA Natural Gas Inventories, and Initial Claims. Closing the week will be the University of Michigan Consumer Sentiment - Preliminary on Friday.
• Earnings on deck this week: Monday (3/10): Franco-Nevada Corp. (FNV), BioNTech SE (BNTX), Oracle Corp. (ORCL), Vail Resorts (MTN), Asana Inc. (ASAN) Tuesday (3/11): Ferguson Enterprises Inc. (FERG), Viking Holdings Ltd. (VIK), Dick's Sporting Goods (DKS), Ciena Corp. (CIEN), Kohl's Corp. (KSS), Casey's General Stores Inc. (CASY) Wednesday (3/12): ABM Industries Inc. (ABM), Adobe Inc. (ADBE), Crown Castel Inc. (CCI), UiPath Inc. (PATH), SentinelOne Inc. (S), American Eagle Outfitters Inc. (AEO) Thursday (3/13): Dollar General Corp. (DG), Wheaton Precious Metals Corp. (WPM), DocuSign Inc. (DOCU), Ulta Beauty Inc. (ULTA), Rubrik Inc. (RBRK) Friday (3/14): Li Auto Inc. (LI), Gogo Inc. (GOGO).