Navigating Market Volatility in February
Global equities faced turbulence in February, with a notable pullback in US tech stocks. The Nasdaq Composite fell by -5.5%, with key names such as Nvidia experiencing sharp declines of almost 30%. Broader indices, including the S&P 500, also lost ground amid shifting economic conditions and investor sentiment. Adding to market uncertainty were renewed trade tensions, as President Trump’s proposed tariffs on goods from Mexico and Canada sparked concerns among investors. This dampened sentiment and contributed to the weakness in US equities.
Meanwhile, Chinese equities stood out as a bright spot. Offshore Chinese stocks surged nearly +20% year-to-date as of 28 February 2025, driven by optimism surrounding AI advancements and supportive government policies. The performance contrast between US and Chinese equities underscored the importance of a well-diversified portfolio in managing market fluctuations.
What This Means for Investors
Market pullbacks like these are a normal part of investing. While concentrated bets on high-growth...