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Friday, March 28

Noteworthy macro moves today: Ethereum -5.7%. Bitcoin -2.4%. Gold +0.7%. Noteworthy US mega-cap moves today: JPMorgan Chase & Co (JPM) -0.6%.

Recent market movements are heavily influenced by the release of key economic data, particularly in the U.S. The Personal Consumption Expenditures (PCE) price index for February showed a 0.3% increase month-over-month, aligning with expectations but raising concerns as core PCE inflation rose to 2.8%, above forecasts of 2.7%. This has led investors to reassess their positions amid fears that persistent inflation could prompt more aggressive monetary policy from the Federal Reserve.

In Europe, softer-than-expected inflation figures from France and Spain have increased speculation about potential interest rate cuts by the European Central Bank (ECB). French CPI grew at only 0.9% year-on-year compared to an expected uptick, while Spanish HICP fell significantly below projections at just 2.2%. These developments contribute to growing uncertainty regarding the ECB's future actions amidst ongoing trade tensions stemming from proposed tariffs on auto imports announced by President Trump.

Additionally, global equity markets are experiencing downward pressure due largely to these tariff-related uncertainties and mixed signals surrounding central bank policies across major economies like Germany and Japan where unemployment rates have risen unexpectedly high this March—indicating broader economic challenges ahead that may impact growth trajectories globally.

Bitcoin (BTC/USD) [-2.7%]
Bitcoin's price has dropped significantly today, declining by 2.62% amid heightened volatility in the cryptocurrency market. This downturn coincides with President Trump's announcement of a 25% tariff on imported vehicles, which has stirred uncertainty in global markets and shifted investor focus toward safe-haven assets like gold. Additionally, $14.43 billion in Bitcoin options are set to expire today, potentially influencing further price movements. Social media discussions have highlighted that Bitcoin could break out soon, possibly reaching the low to mid-$90s by early April, with its performance closely tied to equity markets. Conversations also noted that South Carolina has introduced a Bitcoin Reserve bill allowing state funds to be invested in Bitcoin, while the US Government moved 97.3 BTC to a new wallet. Meanwhile, Ethereum has experienced a decline of 4.68%, reflecting broader market sentiment that may also affect Bitcoin.

SPDR Gold Shares (GLD) [+0.5%]
Gold has reached a record high, reflecting an increase driven by heightened safe-haven demand amid escalating geopolitical tensions and the announcement of a permanent 25% tariff on auto imports by President Trump. This market volatility has prompted a surge in gold's value as investors seek protective assets. Discussions on social media have highlighted GLD's recent performance, noting it reached a four-year high against the S&P 500, influenced by increasing economic uncertainty. Additional comments on equity valuations suggest current levels are higher than at the last secular top. In Asia, the gold sector saw gains despite broader market declines, further underscoring the shift towards gold as a safe haven amid trade concerns.

LULU | -10.8% | -4.0B
Lululemon Athletica Inc | Apparel, Accessories & Luxury Goods
Lululemon Athletica Inc. reported its fourth-quarter results, achieving earnings of 6.14 per share, exceeding the estimate of 5.85, alongside revenue of 3.61 billion, surpassing the expected 3.57 billion. Despite these positive figures, the company issued disappointing guidance for fiscal 2025, projecting revenue between 11.15 billion and 11.30 billion, below the consensus estimate of 11.31 billion, and earnings per share between 14.95 and 15.15 versus the anticipated 15.40. Concerns regarding market competition and decreasing consumer spending contributed to a significant drop in share price, which fell nearly 13% in premarket trading. Additionally, Lululemon's guidance included headwinds from tariffs on China and Mexico, further compounding investor concerns about profit margins. The company's management acknowledged challenges in the U.S. market, which have been exacerbated by uncertain consumer sentiment and slowing growth.

APP | +8.8% | +8.2B
Applovin Corp | Application Software
AppLovin Corporation has announced the retention of the Quinn Emanuel legal firm to conduct an independent review of recent short report activity targeting the company. This decision, made public approximately 28 minutes ago, reflects AppLovin's commitment to transparency and shareholder protection. The CEO emphasized the company's determination to address misleading information and defend its operations. Additionally, a notable investment firm has reiterated a buy rating on AppLovin, setting a price target of 650, suggesting confidence in the company's potential despite recent volatility. This news comes amid increased scrutiny surrounding the AXON 2.0 platform. Concurrently, AppLovin's stock has experienced significant price movement due to short-seller activity, with notable declines following accusations of non-compliance with app store rules. Recent discussions on social media highlighted substantial profits made by traders capitalizing on these price fluctuations.

TSLA | +1.6% | +13.9B
Tesla Inc | Automobile Manufacturers
Tesla Inc is currently navigating potential challenges as the UK government seeks an exemption from a forthcoming 25% auto tariff, set to take effect on April 3, 2025. This negotiation is underscored by Finance Minister Rachel Reeves, who highlighted its significance for British automakers and Tesla's role in the market. Concurrently, Canada has excluded Tesla from its electric vehicle rebate programs due to U.S. tariffs, a development that Elon Musk has warned could disrupt operations and supply chains. Social media discussions reveal that Tesla is discontinuing the “Full Self-Driving” name in China amid regulatory scrutiny. Additionally, there is a noted increase in Tesla owners selling their vehicles, leading to a rise in unsold inventory, which may prompt price cuts. Analysts at Wedbush have set a price target of 550 for Tesla shares, while HSBC has reduced its target to 130 due to ongoing sales weaknesses.

ORCL | -2.1% | -8.1B
Oracle Corp | Systems Software
Oracle Corp's shares have dropped following the U.S. Department of Defense's termination of a software contract intended for managing the civilian workforce. This cancellation stemmed from budgetary scrutiny by Pentagon cost-cutters, directly affecting Oracle's stock performance. Concurrently, the Nasdaq 100 Index has declined, reflecting broader market sentiment that may also influence Oracle's recent price movement. Additionally, discussions are underway regarding SoftBank's potential establishment of AI industrial parks in the U.S., which could involve significant investments. This information, along with former President Trump's confirmation of the 'Stargate' AI infrastructure project aimed at allocating substantial funds toward AI initiatives, has surfaced during trading hours, further shaping the market landscape.

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