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Crash Course: Navigating the Latest Market Plunge
Hope you're having a great Sunday! ☕📈
Here’s your weekly market recap, bringing you the biggest updates in stocks, crypto, and the economy—quick, clear, and to the point.
Stock Market
Index | Week | Month | Year |
|---|---|---|---|
DOW | -7.86% | -10.48% | -1.51% |
S&P 500 | -9.08% | -12.06% | -2.50% |
NASDAQ | -10.02% | -14.34% | -4.07% |
FTSE 100 | -6.97% | -7.20% | +1.82% |
STOXX 50 | -8.50% | -10.79% | -2.72% |
NIKKEI 225 | -9.00% | -8.42% | -13.37% |
Stocks Headlines
Global stock markets faced significant declines following U.S. President Donald Trump's announcement of extensive tariffs. The S&P 500 companies experienced a $5 trillion loss over two days, marking a record two-day decline that surpassed the $3.3 trillion drop in March 2020 during the onset of the pandemic. The tech-heavy Nasdaq entered a bear market, closing more than 20% below its record high, while the Dow Jones Industrial Average and the pan-European STOXX 600 index both confirmed corrections. In retaliation, China imposed additional levies of 34% on American goods, intensifying fears of a full-blown global trade war and potential recession.
$AMZN ( ▲ 1.31% ) : Amazon has submitted a last-minute bid to acquire TikTok, the popular video-sharing app facing a U.S. ban if not sold by its Chinese owner, ByteDance. The offer was detailed in a letter to officials involved in the sale discussions. However, parties involved reportedly are not taking Amazon's bid seriously. Other potential buyers include U.S. investors and companies like Oracle and Blackstone.
$INTC ( ▼ 6.7% ) : Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) have tentatively agreed to form a joint venture to operate Intel's chip manufacturing facilities, with TSMC acquiring a 20% stake. This initiative aims to address Intel's recent challenges, including an $18.8 billion net loss in 2024. The U.S. administration has been encouraging this collaboration to bolster domestic semiconductor manufacturing. Neither Intel nor TSMC has commented on the agreement.
$BLK ( ▼ 0.94% ) : China has delayed the $23B sale of 43 global ports, including key Panama Canal facilities, to BlackRock. The deal faced antitrust scrutiny from Chinese regulators, halting the agreement. Beijing was reportedly upset for not being consulted before the sale. This move adds to growing U.S.-China tensions over control of global shipping routes.
Spotlight
SpaceX's Fram2 mission marked the first crewed polar orbit, with four private astronauts—including leader Chun Wang—launching from Kennedy Space Center. Over a four-day mission, they conducted 22 experiments on human physiology. The crew captured unprecedented images of Antarctica's pristine landscape, enhancing our understanding of space travel's effects on the human body.
Crypto
Asset | Week | Month | Year |
|---|---|---|---|
Bitcoin | +0.68% | -4.16% | +19.57% |
Ethereum | -0.91% | -16.39% | -48.16% |
XRP | -1.95% | -12.19% | +252.% |
Crypto Radar
Circle Internet Group, the issuer of the USDC stablecoin, has filed for an initial public offering (IPO) on the New York Stock Exchange under the ticker "CRCL." The company reported a 15.9% year-over-year revenue increase, reaching $1.68 billion in 2024, up from $1.45 billion in 2023. This marks Circle's second attempt at going public, following a terminated $9 billion merger with a special purpose acquisition company in late 2022.
HashKey Group and Bosera Asset Management are set to launch the world's first tokenized money market ETFs in April, following approval from Hong Kong's Securities and Futures Commission. These ETFs aim to merge traditional finance with blockchain technology, enhancing transparency and liquidity for investors. The initiative is part of Hong Kong's broader strategy to establish itself as a global hub for digital asset innovation.
Chainalysis warns that while illegal crypto transactions initially declined year-over-year, 2024 could set new records for illicit activity, potentially surpassing $51bn. The firm noted that its estimates are conservative, with the true figure likely higher as more addresses are identified. In 2023, the reported $24.2bn was later revised to $46.1bn after discovering more criminal transactions.
Economy
Region | GDP Growth | Inflation Rate | Interest Rate |
|---|---|---|---|
US | 2.40% | 2.80% | 4.50% |
UK | 0.10% | 2.80% | 4.50% |
EU | 0.00% | 2.20% | 2.65% |
Economic News
J.P. Morgan has increased its forecast for a global recession to 60%, up from a previous estimate of 40%, due to recent U.S. tariff announcements. The bank's chief economist, Bruce Kasman, described these tariffs as the most significant tax hike on U.S. households and businesses since 1968. This policy shift has raised concerns about escalating trade tensions and potential retaliation, which could dampen business sentiment and disrupt supply chains.
There are opinions suggesting President Trump might be using tariffs strategically to slow down the stock market, thereby encouraging investment in bonds. The idea posits that as tariffs reduce stock market performance, investors may flock to bonds, increasing their prices and lowering yields. This shift could potentially reduce the government's borrowing costs by allowing for the refinancing of national debt at more favorable rates. However, this approach carries significant risks, including potential retaliation from trade partners and unintended economic consequences.
In March, the U.S. economy added 228,000 jobs, surpassing forecasts and indicating a resilient labor market despite economic uncertainties. The unemployment rate edged up to 4.2%, partly due to increased participation as more individuals sought employment. Notable job gains occurred in healthcare, social assistance, and transportation sectors. However, economists caution that recent tariff implementations could introduce new challenges, potentially impacting hiring and overall economic stability in the coming months.
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Disclaimer:
We are not financial advisors, and the information provided in this newsletter is for educational purposes only. Always conduct your own due diligence and consider what makes sense for your individual financial situation. Investing involves risks, and there is no guarantee of making money. In fact, you may lose money. We aim to provide you with the tools and insights to help you make informed decisions, but the ultimate responsibility lies with you.