Credit card charge-offs have spiked dramatically, with Capital One and Discover Financial reporting rates of 6.35% and 6.03% respectively, their highest in over a decade. This represents a quadrupling of uncollectible credit card debt since early 2022, when default rates were just 1.5%. Simultaneously, US credit card balances have surged to a record $1.2 trillion in Q4 2024, marking a $45 billion increase
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China’s consumer prices fell 0.7% year-over-year in February, with Core CPI dropping 0.1%, marking the second monthly decline in over 15 years. The GDP deflator decreased 0.8% in Q4 2024, the 7th consecutive quarter of falling prices, matching the 1990s streak and potentially becoming the longest period of declines since the 1960s. These deflationary pressures stem from weak spending and the ongoing property crisis, which has eroded consumer confidence and forced businesses to lower prices
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The US share of global market capitalization has dropped 3.5 percentage points in two months to 47.5%, its lowest since Q2 2024. This decline, the largest since the 2022 bear market, is reminiscent of the 2008 Financial Crisis. The S&P 500 is underperforming global stocks by the widest margin in nearly 40 years this quarter, down 3.5% year-to-date compared to the MSCI World Ex USA index’s 9.3% gain
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Daniel Skelly (Morgan Stanley): Correction’s bottom likely reached, but volatility persists due to policy uncertainty and market sensitivity to sentiment shifts
Michael Rosen (Angeles Investments): Market fluctuations will continue as policy uncertainty remains, with volatile investor sentiment reflected in market performance
Jamie Cox (Harris Financial Group): Hopes for improved tariff messaging from the administration to alleviate market uncertainty
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President Trump signed an executive order invoking emergency powers to enhance US production of critical minerals and potentially coal. The order uses the Defense Production Act to provide financial support for domestic processing of critical minerals and rare earth elements. The US International Development Finance Corporation, in collaboration with the Department of Defense, will finance new mineral production projects. This move aims to reduce reliance on foreign imports and boost domestic natural resource development
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BREAKING: Nike on Thursday warned that sales will drop by a double digit percentage in its current quarter, as the sneaker giant’s turnaround plan takes longer than expected while it contends with new tariffs and sliding consumer confidence
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Tesla has seen an unusually high influx of retail investor dollars over recent days, according to JPMorgan.
Everyday investors have bought Tesla for the last 12 consecutive sessions, sending in $7.3 billion in total, firm data shows. That’s the highest magnitude of all past buying streaks going back more than a decade, per JPMorgan.
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