This Week's Market Forecast

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Last week, our focus was on Nvidia as the company wrapped up tech earnings season. The report was solid but not spectacular, raising concerns that demand for its chips could slow after DeepSeek's January release. The reaction? A sharp tech selloff on Thursday, followed by a late-week rebound.

Markets have been glued to Washington ever since Trump took office, and this week is shaping up to be another pivotal one. The President initially announced 25% tariffs on Mexican and Canadian goods in his first week, setting a February 1st deadline. However, after negotiations with both countries over border security, he extended the deadline to March 4th—Today.

As an initial reaction to Trump's new tariffs effective today, global markets are swooning on fears of a full-blown trade war. China and Canada have gone into retaliatory-tariff mode and Mexico has vowed to respond.

Recent economic data has been weak. Two consecutive consumer confidence reports came in negative, adding to concerns. However, last week's PCE report—the Fed's preferred inflation gauge—met expectations, providing some stability. This week, all eyes will be on Friday's February Jobs Report, released at 8:30 AM.

With uncertainty around tariffs and economic data, expect continued market volatility. Pullbacks are possible, but staying level-headed is key.

My advice? Focus on the positive and keep an optimistic outlook.

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