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Friday, April 4

Noteworthy macro moves today: Oil (WTI) -6.8%. Copper -5.7%. S&P 500 Index (US) -2.3%. Noteworthy US mega-cap moves today: Amazon.com Inc (AMZN) -6.1%. Meta Platforms Inc (META) -5.0%. Tesla Inc (TSLA) -5.0%. 

Noteworthy macro moves today: Oil (WTI) -7.0%. Copper -5.9%. S&P 500 Index (US) -2.3%. Noteworthy US mega-cap moves today: Amazon.com Inc (AMZN) -5.6%. Tesla Inc (TSLA) -4.8%. JPMorgan Chase & Co (JPM) -4.5%.

The market is currently experiencing significant volatility due to the recent announcement of sweeping tariffs by U.S. President Donald Trump, which includes a 10% baseline tariff on all imports and reciprocal tariffs that could escalate up to 54%. This has led to fears of a global trade war, prompting sharp declines in major equity indices such as the S&P 500 and Dow Jones Industrial Average, with losses exceeding those seen during previous crises.

In addition to these developments, economic data released today shows mixed signals from both the United States and Canada. The U.S. added significantly more jobs than expected in March (228K vs an anticipated 135K), but unemployment rose slightly to 4.2%, indicating potential underlying weaknesses despite job growth; meanwhile, Canada's employment figures fell unexpectedly against forecasts for modest gains.

Investor sentiment remains cautious ahead of Federal Reserve Chair Jerome Powell's upcoming speech regarding monetary policy amidst rising inflation concerns linked directly to Trump's tariff policies. Market participants are closely monitoring how this will influence future interest rate decisions given heightened recession risks now estimated at around 60%, according to some analysts following these announcements.

Invesco QQQ Trust Series I (QQQ) [-2.8%]
In premarket trading, the Invesco QQQ Trust ETF (QQQ) has dropped significantly, declining by over 3% amid a broader market selloff following President Trump's recent tariff announcements. The S&P 500 index is down notably from its February peak, while the Nasdaq 100 approaches bear market territory. Analysts express concerns regarding the economic implications of these tariffs, with one suggesting a potential market plunge of up to 60% if high tariffs persist. Social media discussions reflect a shift in investor behavior, with funds moving into money market accounts due to tariff-related fears. Major holdings within QQQ, including Apple, Nvidia, Amazon, Microsoft, and Broadcom, have all experienced substantial declines, contributing to the ETF's poor performance. The volatility index has surged, indicating heightened market fear and uncertainty.

iShares China Large-Cap ETF (FXI) [-5.9%]
The iShares China Large-Cap ETF (FXI) is experiencing a significant premarket drop of approximately 5.9%. This decline follows President Donald Trump's announcement of new reciprocal tariffs, including a 34% tariff on all U.S. imports from China, effective April 10. Concurrently, China has added 11 U.S. companies to its "unreliable" list, exacerbating tensions between the two nations. Social media discussions have highlighted the impact of these tariffs and restrictions on certain rare earths-related items. Major holdings within FXI have also suffered, with notable declines from TCEHY, XIACY, JD, TCOM, and YUMC. Additionally, the AUD/USD currency pair has dropped significantly, reflecting broader market sentiment that may correlate with FXI's movement.

NKE | -5.9% | -4.7B
Nike Inc | Footwear
Nike Inc experienced a notable decline, closing down significantly on Thursday, resulting in a loss of approximately $13 billion in market value. This drop is largely attributed to new tariffs imposed by the Trump administration, targeting key sourcing hubs where over 90% of Nike's footwear and apparel are manufactured. Countries such as Vietnam, Indonesia, China, and Cambodia face levies ranging from 32% to 54%. Social media discussions highlighted that this decline marked Nike's second worst day since 2001, with trading prices not seen since 2017. The broader market also felt the impact, as the Dow dropped sharply, with Nike and American Express leading the sell-off. Additionally, discounted Nike products were noted at outlets, reflecting consumer sentiment amid the ongoing tariff situation. In related movements, Lululemon Athletica Inc saw a decline following downward adjustments in price targets by analysts.

AMZN | -6.0% | -105.2B
Amazon.com Inc | Broadline Retail
Amazon.com Inc is experiencing a significant decline in pre-market trading, mirroring the broader market's downturn. The stock has dropped notably, following a substantial decline in technology shares after President Trump's announcement of sweeping tariffs, which has heightened fears of a trade war and potential recession. The Nasdaq Composite has seen one of its worst single-day declines in over two decades. Concurrently, social media discussions highlight concerns regarding Amazon's revenue, particularly due to its reliance on products sourced from China, which could be adversely affected by reciprocal tariffs. Market participants are also reacting to expectations surrounding the U.S. Nonfarm Payrolls report and comments from Federal Reserve Chair Jerome Powell, adding to the overall market volatility.

AAPL | -4.7% | -139.4B
Apple Inc | Technology Hardware, Storage & Peripherals
Apple Inc. has experienced a notable decline in market value, losing over $300 billion, marking its steepest drop since March 2020. This downturn coincides with the announcement of new tariffs by President Donald Trump, which analysts estimate could increase iPhone prices significantly. The tariffs have raised concerns about demand destruction in the U.S., particularly as nearly all iPhones sold domestically are manufactured in China. Recent social media discussions highlight that Apple closed down over 9% on Thursday, erasing approximately $310 billion in market value. Analysts at Itaú BBA noted a potential 15% drop in profits due to tariffs affecting Apple's supply chain. Broader market turmoil is evident, with U.S. stocks losing approximately $3.1 trillion in value, reflecting heightened volatility following China's tariff announcements on U.S. goods.

CVNA | -8.1% | -2.8B
Carvana Co | Automotive Retail
Carvana Co (CVNA) has experienced a significant decline of 8.1%, aligning with broader market movements amidst considerable turmoil. The S&P 500 index saw its largest drop since March 2020, falling over 4%, while major European indices also recorded declines exceeding 3%. In a related development, Baird analyst Craig Kennison lowered Carvana's price target from 250 to 200, maintaining a Neutral rating. This adjustment was communicated approximately three hours ago. Additionally, the iShares Russell 2000 ETF declined significantly by nearly 4%, reflecting a broader negative trend in the market that may be contributing to Carvana's recent price movement.

META | -5.0% | -63.5B
Meta Platforms Inc | Interactive Media & Services
Meta Platforms Inc. is experiencing a notable decline, moving lower alongside the broader market amid significant turmoil triggered by new tariffs announced by U.S. President Donald Trump. This has raised fears of a trade war and potential recession, contributing to a substantial drop in the S&P 500 index. Additionally, Meta faces legal challenges in Kenya related to its content moderation practices during Ethiopia's civil conflict, which may further complicate its operational landscape. Social media discussions reflect concerns about potential declines in advertising revenue due to these tariffs. Market sentiment is further echoed by a drop in correlated assets, with Meta's shares declining significantly in line with other major indices.

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