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Welcome back to the 3rd issue. Hope you had a great week!
What’s in this weeks issue;
Tariff tensions dominate markets with U.S. President Trump's upcoming impositions, including auto import tariffs, set to disrupt global supply chains. CoreWeave's IPO fizzled, and Tesla struggles with EU sales amid trade concerns.
Meanwhile, SAP surpasses Novo Nordisk as Europe's most valuable company, buoyed by its cloud and AI pivot. Looking ahead, economic data and April 2's tariff enactments are key market drivers.
Tariff Turbulence Ahead:
All eyes are on April 2, dubbed "Liberation Day" by President Trump, when his reciprocal tariffs, including a 25% levy on auto imports, are set to commence. Markets are bracing for impact as investors anticipate potential disruption and volatility.
CoreWeave's Disappointing Debut:
CoreWeave (CRWV) stepped into the market spotlight but stumbled, closing flat after a downsized IPO. Investors had high hopes for this AI hyperscaler, but the debut fizzled out, leaving a dampened mood among tech enthusiasts.
Analyst Insights: Copper's Tariff Tension:
With potential U.S. tariffs on copper imports looming, copper prices have surged 10% since the year's start. These tariffs could hike U.S. copper costs, reshaping global supply chains and amplifying pressure on metal-intensive sectors like construction and electronics.
Tesla's Trials:
Tesla shares sank nearly 6% amidst a 40% drop in EU sales and looming auto tariff threats. Despite growing European EV demand, Tesla's facing stiff competition and PR challenges, exacerbated by heightened trade tensions between the U.S. and the EU.
Quantum Leap: Google's Quantum Future:
Google's quantum hardware lead hints at a five-year breakout timeline for quantum technology. Investor interest is rekindling post-breakthrough, yet practical applications remain distant. For those eyeing quantum investments, diversified tech ETFs offer a safer route. Hot Take:
As technological advances like quantum computing inch toward reality and trade tensions escalate, market volatility seems inevitable. Investors should tread cautiously, balancing the allure of disruptive tech with the risks of geopolitical tumult. Economic Pulse:
Egg Trade Scramble:
Egg prices and border crossings are on the rise due to the avian flu crisis. With U.S. farmers forced to cull millions of birds, egg prices have soared. Shoppers turn to Mexico for cheaper eggs, resulting in heightened border seizures.
SAP Surpasses Novo Nordisk:
In Europe's markets, SAP has leapfrogged Novo Nordisk thanks to its pivot to cloud services and AI offerings. Meanwhile, investors question Novo's future drug pipeline.
U.S.-Europe Relations Dive:
A chat-group leak reveals simmering U.S. disdain toward European allies, intensifying fears of transatlantic discord. This new rift follows a historical pattern of strained relations, suggesting potential geopolitical and market impacts. Looking Ahead:
Market Expectations:
Anticipation mounts for April 2's tariff unveilings, likely dictating next week's market direction. Economic data, particularly in the labor sector, will also be in focus, culminating in the key nonfarm payrolls report.
Upcoming Earnings Highlights:
Key earnings reports expected next week include Loar Holdings, PVH, and RH. Keep an eye on these as they may provide market clues in the face of external economic pressures.
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Remember, these are personal opinions, not investment advice.