Chip regulations and car tariffs push markets into the red

Chris Beauchamp IG

US stocks have led global markets lower this afternoon, thanks to new tariff headlines and restrictions in China designed to hit Nvidia, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

US stocks stumble in early trading

The more positive tone for US markets was not likely to last, and tariff reports and chip worries have driven Wall Street firmly into the red. Measures in China designed to improve energy efficiency for data centres seem squarely aimed at Nvidia, and the news has dragged the stock, and tech stocks generally, sharply lower. It has lost its most-valuable company crown to Microsoft, continuing the pain for shareholders.

Car tariff threat hits markets

Meanwhile, tariffs seem back on the agenda again as the Trump administration looks to put the Atlantic leak debacle behind it. Levies on car imports seem primed to hit Europe hard, putting the Dax, Dow and S&P 500 firmly on the back foot. Investors remain very concerned that US stocks are due another leg down, one that is likely to drag the rest of the world with it.

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Chris Beauchamp

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

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The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.