Public Markets 8-Hour Briefing
×Market Reaction to Supreme Court Ruling
Market reaction to tariffs has been subdued after the Supreme Court ruling, according to BMO CEO Darryl White. The subdued response comes as investors digest the implications of the court's decision on President Trump's tariff authority.
Stock futures declined 0.4% as uncertainty over American trade policy clouds sentiment. Key events this week include President Trump's State of the Union address, with markets watching for any new tariff announcements.
Corporate News and Earnings
Abbott Laboratories is selling corporate bonds in as many as eight parts to help fund its around $21 billion acquisition of cancer-screening company Exact Sciences Corp. The bond sale comes as healthcare companies continue to pursue strategic acquisitions.
Domino's Pizza logged higher revenue in its latest quarter as same-store sales rose in the US, boosted by growth across both company-owned and franchise stores. The pizza chain beat revenue estimates as sales climbed, providing a bright spot in the consumer spending landscape.
Energy and Commodities
US natural gas futures rose slightly Monday as traders factored in a blizzard slamming into the Northeast pushing up demand for heating and power-plant fuel. The storm is largely offset by the knock-on effects of power outages reducing consumption.
Oil companies received a Supreme Court hearing on climate-change suits as Exxon Mobil Corp. and Suncor Energy Inc. appeal to stop dozens of city and state lawsuits that blame oil companies for climate change.
Technology and Innovation
Nvidia stock hit a bizarre valuation level as investors grapple with the company's massive market capitalization relative to its earnings. The chipmaker remains at the center of AI investment narratives despite valuation concerns.
Generate Biomedicines Inc. is seeking to raise as much as $425 million in an initial public offering, as listing activity in the biotech sector shows signs of recovery. The company uses artificial intelligence in drug development, highlighting the intersection of AI and healthcare.
Regional Markets
German business confidence brightened more than anticipated in February, adding to hope that Europe's largest economy is emerging from a yearslong malaise. The Ifo index suggests the German economy is set to return to growth.
India has "every reason" to attract foreign funds, Finance Minister Nirmala Sitharaman said, even as overseas inflows remain modest and lag behind regional peers following months of volatility. The country is seeking to position itself as an alternative manufacturing hub.
Financial Services
Hedge funds sold most global equities since April, according to Goldman Sachs, as the fastest pace of net sales since the tariff meltdown of early April 2025. The selling pressure reflects growing uncertainty about trade policy and economic growth.
Blue Owl's woes cloud the outlook for private credit as opaque assets become a tougher sell when investors can't pull their cash out. The firm's challenges highlight broader concerns about liquidity in private markets.
Market Technicals
Both 10-year and two-year Treasury yields declined as Wall Street grapples with tariff uncertainty. The yield curve continues to flatten as investors seek safety amid trade policy concerns.
The Swiss franc could surge as much as 17% to the dollar amid growing confidence in the currency's haven status in the face of US policy uncertainty, according to Morgan Stanley strategists. The currency is being viewed as a gold-like safe haven.