This week was marked by significant changes in the global economic landscape, primarily driven by U.S. trade decisions, a moderated inflationary environment, and the performance of key sectors like technology.

How can investors take advantage of these movements? Here's what you need to know.

🏷 Highlights of the Week:

• Impact of U.S. trade tariffs 

• Warnings on how to protect yourself from tariffs 

• Economic expectations and the Selic 

• Nvidia and DeepSeek, why are they trending?

• Market indicators this week 

Impact of U.S. Trade Tariffs

This week, the U.S. announced new tariffs of 25% on products imported from Mexico and Canada, and increased tariffs on Chinese products by 10%.

This policy is generating volatility but also opportunities. How does it impact different sectors?

• Agriculture: Increased domestic demand could benefit local producers, although rising costs of imported inputs could pose a challenge.

• Manufacturing: Local industries might see an opportunity as foreign competition decreases, but those reliant on international supplies could face higher costs.

• Trade and Logistics: Importing companies will suffer from higher operational costs and reduced margins, especially those depending on products from Mexico, Canada, and China.

• Large Corporations: Large importing companies, such as those in technology, may see their margins reduced due to the tariffs. They will need to adapt to a costlier environment.

• Domestic Consumption: Sectors focused on local consumption may benefit if domestic products are more attractive than imports.

• Opportunities for SMEs: Small and medium-sized enterprises that produce locally have a growth opportunity due to reduced foreign competition.

Warnings on How to Protect Yourself from Tariffs

With new tariffs on the horizon, some sectors might be more vulnerable than others. The sectors of education, healthcare, steel, mining, consumption, and telecommunications are seen as options to protect against economic volatility. 

These areas could better weather market fluctuations compared to more exposed sectors facing commercial uncertainty. 

Economic Expectations and the Selic

Analysts are projecting that the Selic rate in Brazil will remain at 15.50% for the upcoming months. 

Although global inflation data is moderating, markets remain nervous about potential reactions from central banks to higher-than-expected inflation. This uncertainty creates a mixed scenario for fixed-income assets, which could become more attractive if interest rates remain stable or even decrease.

Why did NVIDIA fall?

NVIDIA saw a drop in stock due to a market correction after strong growth. Concerns over slowing demand in areas like graphics cards also played a role.

In general, the indexes have seen slight pullbacks as investors adjust their expectations in light of trade policy changes. Despite this, sectors like technology and healthcare remain attractive and are likely to continue generating long-term opportunities. 

Why is DeepSeek trending?

DeepSeek has been gaining attention for its ability to enhance processes through advanced AI. Recently, it has stood out for improving predictions and automating complex tasks, making it a key tool for businesses aiming to boost efficiency. However, quick integration and adoption remain key challenges.

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Market Indicators This Week

• SPDR S&P 500 ETF Trust (SPY): $601.82 (-0.50%)

• Invesco QQQ Trust Series 1 (QQQ): $522.29 (-0.15%)

• SPDR Dow Jones Industrial Average ETF (DIA): $445.39 (-0.78%)

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This week was marked by significant uncertainty, but also by opportunities for investors looking to position themselves correctly in light of U.S. trade decisions and inflation moderation. The key is to diversify and be prepared for changes in the most affected sectors while aiming to capitalize on growth potential in key areas like technology and local manufacturing.

Note: The information provided is for educational purposes only and does not constitute an investment recommendation. It is recommended to consult with a financial advisor before making any decisions.

For illustrative purposes only. Does not represent an investment recommendation. For more information, please see our Social Media Disclosure.

Sources:

• Valor Investe

• Money Times

• Seu Dinheiro

• Dedução