Stock markets saw sharp declines this week as investors shifted toward defensive assets, while crypto faced a steep sell-off. Meanwhile, geopolitical tensions and new U.S. tariffs rattled global markets.

Markets decline as investors turn defensive. Crypto crashes, Nvidia reports strong earnings, and new U.S. tariffs impact global trade

Markets Slide as Investors Seek Safety

Investor sentiment took a hit, particularly in speculative assets. The Nasdaq fell 5.07%, the S&P 500 dropped 2.49%, and the Dow Jones edged down 0.27%. Despite market uncertainty, falling bond yields and expected rate cuts could provide support for risk assets. The 10-year yield dropped by over 2 basis points to 4.26% on Friday.

Nvidia’s Strong Earnings Amid Data Center Slowdown

Corporate earnings revealed Nvidia’s Q4 revenue of $39.3 billion, a 78.8% YoY increase, despite slowing data center growth. Its Blackwell GPU segment remained strong, generating $11 billion in sales.

Crypto Crash: Bitcoin Plummets 25%

The digital asset market tumbled as Bitcoin fell below $80K, dropping over 25% due to major ETF outflows. Ethereum (ETH) slid 31%, while Solana (SOL) plunged 42%. The Crypto Fear & Greed Index hit 10, signaling extreme fear among investors.

Trump’s New Tariffs Shake Global Trade

President Trump introduced a 25% tariff on $1.2 trillion in Canadian and Mexican imports and a 10% tariff on $550 billion in Chinese goods. The move pushed investors toward defensive stocks, strengthening the U.S. dollar while weakening the Canadian loonie and Mexican peso.

Defensive Sectors Take the Lead

As market uncertainty rose, investors sought stability. Consumer Staples (XLP) and Utilities (XLU) outperformed, reinforcing the trend that “boring is back,” as described by Jay Woods, Chief Global Strategist at Freedom Capital Markets.