Market Wrap

The main theme overnight was risk-off. Semiconductor and the broader tech stocks took a hit even though a major chipmaker reported positive earnings and revenue guidance the day before.

The DJIA closed flat while the S&P500 and the Nasdaq Composite Index fell 0.5% and 1.2% respectively. The Eurostoxx 50 fell 0.2%. The Dollar Index edged up 0.1% to 97.79 and EUR-USD was a touch lower at around 1.1800.

The US 2Y yield fell 4bp to 3.43% and the 10Y yield fell 5bp to 4.00%. The German 10Y yield fell 2bp to 2.69%. The UK 10Y yield fell 4bp to 4.27%.

Brent crude oil prices edged up 0.1% to USD70.75. Gold rose 0.4% to USD5,185. Silver fell 1% to USD88.30.

US jobless claims increased by 4,000 to 212,000 in mid-February, below expectations and recent averages. Continuing claims fell by 31,000 to 1,833,000, showing labor market stability amid slowing hiring. Federal employee claims, watched due to shutdown impacts, dropped by 141 to 554. Sentimentally negative USD

Canadian wages increased by 1.94% in December 2025 compared to the same month in the previous year. From 1992 to 2025, wage growth in Canada averaged 2.57%, with a peak of 10.10% in May 2020 and a low of -0.40% in May 2001.

Eurozone's Economic Sentiment Indicator fell to 98.3 from January's 99.3, below the forecast of 99.8. Sentiment declined in services, manufacturing, and construction, but improved for consumers and retailers. The ESI dropped significantly in France and Italy, remaining stable in Spain, Germany, and the Netherlands. Inflation expectations rose, indicating ongoing pricing pressures. Sentimentally negative for Euro

Data watch: the release of PPI data for Jan tonight. The MNI Chicago PMI for Feb; construction spending for Dec; as well as the Kansas City Fed services activity index for Feb, will also be released.