Morning Bid: Trump chaos pushes central banks into shadows

Mike Dolan

Mon, Mar 10, 2025, 4:01 AM 8 min read

By Mike Dolan

Morning Bid U.S.

What matters successful U.S. and planetary markets today

By Mike Dolan, Editor-At-Large, Financial Industry and Financial Markets

If markets believed Donald Trump would intermission his disruptive economical plans astatine the archetypal show of a maturation downturn oregon a banal marketplace tantrum, they whitethorn person to deliberation again.

Although Commerce Secretary Howard Lutnick flatly ruled retired a recession successful an interrogation connected Sunday, the President declined to marque a prediction either mode and insisted immoderate turbulence was inevitable.

"There is simply a play of transition, due to the fact that what we're doing is precise big," Trump told Fox News. "It takes a small time, but I deliberation it should beryllium large for us."

The banal marketplace has been unnerved recently, with uncertainty astir sweeping commercialized tariffs and concerns astir authorities spending and occupation cuts undermining concern and user confidence.

The S&P 500 mislaid different 3.1% past week, with the tech dense Nasdaq down 3.45% and the Dow Jones bluish chips disconnected 2.4%. The Russell 2000 Small Cap scale fell 3.9%.

"He's not going to measurement disconnected the gas," Lutnick said connected NBC's "Meet the Press", referring to Trump's determination to propulsion ahead.

U.S. stocks stabilized somewhat aft the February employment study connected Friday showed a prime up successful jobs and Federal Reserve Chair Jerome Powell said the system was holding up truthful far. But jobs numbers did small to dispel fears of a softening labour market, and Powell simply reaffirmed that the Fed volition beryllium connected clasp for the foreseeable future.

Stock futures were successful the reddish again archetypal happening connected Monday, Treasury yields slipped again and the dollar clawed backmost immoderate of past week's steep losses.

Overseas, Chinese markets were jarred by play information showing a astonishment instrumentality of user terms deflation. European stocks are disconnected too.

In different news, Canada's dollar was a interaction firmer aft erstwhile Bank of Canada and Bank of England politician Mark Carney won the contention to beryllium the country's caller Prime Minister.

Today I'll instrumentality a look astatine however hyperactive authorities argumentation is sidelining cardinal banks. After years successful thrall of monetary policy, investors whitethorn present person to look elsewhere for direction.

Today's Market Minute

* President Donald Trump declined to foretell whether theU.S. could look a recession successful an interrogation published Sundayamid banal marketplace concerns astir his tariff actions connected Mexico,Canada and China. * China's user terms scale successful February missedexpectations, falling astatine the sharpest gait successful 13 months asproducer terms deflation persisted. Seasonal request has fadedand households stay cautious astir spending amid occupation andincome worries. * Former cardinal banker Mark Carney won the contention to becomeleader of Canada's ruling Liberal Party, authoritative results showedon Sunday. He volition instrumentality implicit astatine a tumultuous time, with Canadain the midst of a commercialized warfare with the United States. * European Union concern ministers are discussing connected Mondayhow to summation defence spending done caller associated borrowing,existing EU funds and a greater relation for the European InvestmentBank, the Polish EU presidency said. * Finally, U.S. occupation maturation picked up successful February, Fridaydata showed, but cracks are emerging successful the once-resilient labormarket arsenic chaotic commercialized argumentation and heavy national governmentspending cuts endanger to disrupt economical maturation this year.