While the Ukrainian president is fiercely fighting off overseas giants encroaching on Ukraine’s underground treasures hidden somewhere in fairy-tale caves known only to a limited circle of Ukrainian “inhabitants,” and the entire nation is watching the battle between good and evil with bated breath, trying to imagine how this battle of the titans will affect the lives of ordinary citizens, the stock market and beyond continues to fall. This is a quick review from Ivan Kompan, Edinburgh Business School analyst.
Once again, Trump has rattled global markets. He announced a 10% tariff on Chinese imports, citing China’s role in fentanyl trade. But he didn’t stop there—he also threatened European carmakers with new tariffs. And of course, Mexico and Canada are “guilty beyond doubt” and will face consequences next week. Investors are spooked, as tariff hikes tend to drag down the S&P 500, whose companies rely heavily on global trade.
The PCE inflation index—a key measure watched by the Fed—rose 0.3% in January, the same as in December, hitting 2.5% YoY. While this is lower than in previous months, it still exceeds the Fed’s 2% target, leaving future rate cuts uncertain. Even Fed officials are unsure about inflation’s trajectory, unlike Ukraine’s central bank, which claims to know exactly when inflation will peak and decline (if only the Fed could be so confident!).
Nvidia crushed earnings expectations in revenue, profit, and AI chip sales. CEO Jensen Huang highlighted the company’s breakthrough in Blackwell AI supercomputers. A year ago, the market would have celebrated these results, but now? Nvidia’s stock dropped 8.5% the next day, signaling a shift in investor sentiment. The once-unshakable “Magnificent 7” tech stocks are struggling in 2025, with only Meta showing resilience. As the famous Ukrainian poet Pavlo Tychyna might say: “Not the same old Myrhorod, not the same Khoroł river…”
Bitcoin (-17%) and Ethereum (-25%) plummeted this week, falling even faster than stocks. Since the start of 2025, they’re down 14% and 36%, respectively. Instead of being a hedge, crypto traders found themselves in deeper losses.
The Fear & Greed Index has shifted from “Neutral” to “Extreme Fear.” If S&P 500 falls further, Trump may be forced to react—perhaps by cutting taxes to boost sentiment. However, abandoning his tariff war is unlikely—after all, a hero with sky-high approval ratings can’t just backtrack. As for buying the dip? Timing the bottom is nearly impossible. The market remains expensive and increasingly uncertain, making it a tough call. Unless, of course, a rare-earth metals deal magically saves the day.
*And finally, we would like to remind you that the information you have just listened to is not an investment advisory. Remember – investments in the stock market are always tied up with financial risks. So be careful and cautious.
