Morning Note: S&P 500 Slumps, Eurozone Jobs, CrowdStrike Earnings in Focus

S&P 500 Drops Following U.S. Tariff Plan

On Monday, U.S. stocks showed a significant decline, and the S&P 500 suffered the biggest daily percentage drop since December 18. The sell-off was linked to Donald Trump’s announcement that 25% tariffs would be imposed on Canada and Mexico starting Tuesday and the statement that no room was left for negotiations to be held. He added that the opposite sanctions would begin on April 2. As a result, the S&P 500 (SPX) dipped 104.78 points, or 1.76%, to close at 5,849.72.

(S&P 500 Index Daily Chart, Source: Trading View)

From a technical analysis perspective, the S&P 500 index has been in a bullish trend since early August 2024, as indicated by its pattern of higher highs and higher lows. However, bearish forces regained control after the index failed to break above the resistance zone in mid-February 2025.
Recently, the index has completely broken below the swap zone of 5,888 – 5,923, with a high probability of retesting the support zone at 5,735 – 5,777. If this support zone fails to hold, it could signal a trend reversal from bullish to bearish in the short term, with bearish momentum continuing to push the index downward.

Eurozone Unemployment Rate Expected to Hold Steady

The Eurozone's unemployment rate was 6.3% in December, and the January forecast remains at the same level. This data is set to be released at 10:00 GMT. The expectation reflects a stable labour market, with employment conditions neither too weak nor too strong. The unchanged forecast is closely linked to the ongoing economic expansion and a balanced labour supply and demand.

(EUR/USD Daily Chart, Source: Trading View)

From a technical analysis perspective, the EUR/USD currency pair has been in a bearish trend since the end of September 2024, as indicated by the formation of lower highs and lower lows. However, it found strong support and rebounded at the beginning of January 2025. Currently, the price is nearing the resistance zone of 1.0500 – 1.0530. If it gets rejected from the resistance zone, there is a high probability that it will retest the swap zone of 1.0390 – 1.0420 to determine its next move.

Investors Await CrowdStrike's Q4 Earnings Report

CrowdStrike will reveal its Q4 earnings on March 4 at GMT 22:00. It is expected that the company's revenue will increase by 22.3% on a year-over-year basis and reach $1.03 billion, marking a slowdown from the 32.6% growth seen in the same quarter last year. Adjusted earnings per share (EPS) are expected to reach $0.86. Meanwhile, several of CrowdStrike’s cybersecurity peers have already released their Q4 results, thereby offering insights into the company's possible performance trends.

(CrowdStrike Holdings Share Price Daily Chart, Source: Trading View)

From a technical analysis perspective, the overall trend of CrowdStrike Holdings' share price has been bullish since early August, as indicated by the formation of higher highs and higher lows within the ascending channel.

Currently, the price is retesting the swap zone at 371 – 379. If it closes above this level, there is a high probability of continuing to challenge the resistance zone of 402 – 409. Conversely, if it breaks below the swap zone, the price is likely to continue falling back to retest the support zone of 333 – 342.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.
Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.