Market U.S. stock markets closed lower on February 20, with the Dow Jones Industrial Average falling more than 260 points. Concerns over private credit and Middle East tensions weighed on market sentiment. Among the top 20 stocks by trading volume on February 20, NVIDIA announced it will launch an unprecedented new chip in March. Most popular U.S.-listed Chinese stocks declined. H World Group Limited rose 1.54%, while Trip.com Group Limited fell 2.28%. Oil prices extended gains due to ongoing fears of U.S.-Iran conflict. Spot gold increased 0.42% to $4,998.50 per ounce. European stock markets retreated, driven by disappointing earnings reports from Airbus SE and Renault SA.
Macro Former U.S. President Donald Trump gave Iran a 10-15 day deadline to reach an agreement. Trump warned that "something very bad" would happen if Iran fails to secure a deal. Informed sources indicated Trump is considering a "limited-scale" initial strike against Iran. The United Kingdom expressed concerns about violating international law and has not authorized the U.S. to use its bases for strikes on Iran. Israeli Prime Minister Benjamin Netanyahu cautioned Iran, stating Israel is "prepared for any scenario." Trump announced that a "Peace Committee" has secured $17 billion in aid commitments for Gaza, with multiple countries planning to contribute personnel to a stabilization force. Foreign investors more than doubled their net purchases of U.S. stocks last year. A controversy over extraterrestrial topics emerged, with Trump accusing former President Barack Obama of leaking classified information. Trump met with Indonesian President Prabowo Subianto to sign economic and security agreements. New York City halted the expansion plan for autonomous taxi services. The former Prince Andrew of the U.K. was released after previously being arrested over alleged misconduct. The Ninth Congress of the Workers' Party of Korea commenced in Pyongyang.
Corporate Amazon.com surpassed Wal-Mart in sales, becoming the global leader in revenue. An awkward moment occurred at an Indian AI summit when Sam Altman and Amodei declined to collaborate. JPMorgan Chase's European branch was fined €12.2 million by the European Central Bank for misreporting capital requirements. Accenture PLC now requires senior employees to use AI tools for eligibility in promotions. Johnson & Johnson is exploring the sale of its orthopedic business, which could be valued at over $20 billion. BioNTech SE has sued Moderna, Inc. for alleged patent infringement related to COVID-19 vaccines. The management company of a Trump-themed ETF acquired the MAGA fund. West Virginia has sued Apple, accusing the company of failing to prevent the distribution of child sexual abuse material. A Barclays survey suggests Google is expected to lead ultra-large cloud service providers in bond issuance this year. Deere & Company shares surged 9.6% as the agricultural machinery giant anticipates a recovery in the farm economy.
Commentary Federal Reserve officials criticized remarks from Hassett, arguing they undermine central bank independence. Improvements in the labor market appear to have influenced Milan, who now suggests fewer interest rate cuts may be needed this year. Milan stated he no longer believes the Fed should cut rates as aggressively as previously expected this year. According to LSEG Lipper, outflows from junk bond funds have intensified, while demand for U.S. Treasuries has cooled. A billionaire hedge fund manager is shorting U.S. stocks while going long on global markets. Traders are eager but unable to find avenues to invest in Anthropic. Top Wall Street analysts have issued upgraded ratings for Shopify and eBay. In New York forex trading, the U.S. dollar index rose for the fourth consecutive day, supported by optimistic unemployment claims data. Crude oil: WTI reached its highest level since August, driven by heightened concerns over the Iran situation. European bond markets: German government bonds declined as rising oil prices pointed to inflation risks.