Market Analysis Summary - February 24, 2026

Macro Update

US indices experienced a significant decline, with the Dow Jones falling by 1.66%, the S&P 500 down 1.04%, and the Nasdaq 100 off 1.13%. This downturn was attributed to investor concerns over risk assets, exacerbated by trade tensions and fears surrounding artificial intelligence (AI) disruptions.

Key Market Movements

• Bitcoin: The cryptocurrency briefly dipped below $63,000 during the market sell-off but later stabilized.
• Trade Tensions: President Trump proposed a temporary 15% tariff following the Supreme Court's decision to strike down previous measures, contributing to market unease.
• Sector Performance: Financials and software stocks were notably affected, dropping 3.3% and 4.3% respectively, while defensive sectors like gold and healthcare saw gains.

Defensive Assets

Gold prices rose by 2.6% due to increased safe-haven demand, while healthcare stocks gained 1.2%, with Eli Lilly leading the sector with a 4.9% increase. Consumer staples also showed resilience amidst the broader market decline.

Earnings Season Insights

As the earnings season approaches its conclusion, approximately 73% of S&P 500 companies have surpassed earnings expectations. The aggregate growth for the fourth quarter is projected at 13.9%, with NVIDIA's results anticipated on Wednesday.

Asian Market Overview

Asian markets displayed mixed results, with Japan’s Nikkei 225 rising by 0.9% due to renewed optimism surrounding AI. The Japanese yen weakened to around 155 per US dollar amid ongoing tariff uncertainties, while Brent crude oil prices approached $72 per barrel, influenced by US-Iran tensions.

DAX 40 Analysis

The DAX 40 index has retraced from its recent high of 25,331, with a potential slip below Monday's low of 24,938 indicating a test of the mid-February low at 24,734. The index remains in a toppish short-term outlook while below 25,331, but maintains a bullish medium-term outlook as long as it stays above the February 5 low of 24,491.

AUD/USD Performance

The AUD/USD currency pair has been consolidating below its multi-year high of $0.7147, finding support at last week's low of $0.7016. A rise above Monday's high of $0.7112 could signal a return to the year's peak, with a bullish bias maintained as long as it stays above $0.7016.

Copper Price Trends

Copper prices have been gradually increasing from last week's low of $5.6280, with a need to exceed last week's high of $5.9045 to target the late December high of $5.9235. The short-term outlook remains bullish while Monday's low at $5.7508 provides support.

Conclusion

The current market environment is characterized by heightened volatility and mixed signals across various asset classes. Investors are advised to remain cautious and monitor key levels in indices and commodities as the situation evolves.