Trade tensions and geopolitical issues boost gold and silver; AI market frenzy in China; Cook hints at visual AI breakthrough.

Trump Considers Military Action Against Iran

Initial Strikes and Potential Escalation

According to the New York Times, President Trump has informed his advisors that if diplomatic efforts or initial targeted strikes fail to compel Iran to abandon its nuclear program, he may consider a larger military attack aimed at ousting Iranian leaders in the coming months. U.S. and Iranian negotiators are set to meet in Geneva on Thursday, which may be the last chance to avoid military conflict. Trump is weighing various options should negotiations fail, with a preference for initial strikes in the coming days to signal to Iran the necessity of abandoning its nuclear ambitions.

Upcoming Negotiations

Reports from AXIOS indicate that U.S. and Iranian representatives will discuss a detailed nuclear agreement proposal in Geneva. A senior U.S. official stated that the Trump administration expects to receive this proposal by Tuesday at the latest. Current diplomatic efforts are seen as a final opportunity for Iran before any large-scale military actions are considered.

Trade Tensions and Market Reactions

Gold and Silver Prices Rise

Amid rising risk aversion in Asia, gold and silver prices have increased. President Trump announced plans to raise a global tariff rate to 15%, replacing several tariffs deemed illegal by the Supreme Court. Analysts from ANZ noted that this move has reignited trade tensions, potentially boosting safe-haven buying, thus supporting gold and silver prices.

U.S. Trade Agreements Remain Valid

U.S. Trade Representative Robert Lighthizer confirmed that bilateral trade agreements with the EU and South Korea remain effective despite the Supreme Court's ruling on tariffs. He emphasized the importance of these agreements and the expectation of full support from partners.

AI Market Dynamics

Diverging Trends in AI Investment

While the U.S. market experiences "AI panic" with investors selling off software companies, Chinese investors are aggressively buying AI-related stocks. This divergence reflects differing investment logic, with Chinese investors focusing on the benefits of AI rather than competition threats.

UBS Bullish on Chinese Lithium

UBS has raised its price forecasts for lithium, indicating that the market has entered a new super cycle driven by electric vehicle demand. The report highlights the expected growth in lithium demand due to the global energy storage boom.

Stock Market Reactions

U.S. Indices Rally

On February 20, following the Supreme Court's ruling against Trump's tariffs, U.S. stock indices closed higher. The Dow Jones rose 0.47%, the S&P 500 increased by 0.69%, and the Nasdaq gained 0.9%. Major tech stocks mostly advanced, with Nvidia up 1.02% and Apple rising 1.54%.

Tesla's New Cybercab

Tesla has launched its first autonomous vehicle, the Cybercab, designed for robotaxi services. This vehicle lacks a steering wheel and pedals, marking a significant step in Tesla's autonomous driving initiative.

Conclusion

The geopolitical landscape remains tense with potential military actions against Iran, while trade tensions are influencing market dynamics. The AI sector shows contrasting trends between the U.S. and China, and significant movements in stock prices reflect investor sentiment amid these developments.