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Thursday, March 27

Noteworthy macro moves today: Gold +1.1%. 

Recent market movements are heavily influenced by President Trump's announcement of a 25% tariff on all imported automobiles, set to take effect on April 3. This decision has raised concerns about escalating trade tensions and its potential negative impact on the U.S. economy, leading to significant declines in major stock indices such as the Nasdaq and S&P 500.

In addition to tariffs affecting investor sentiment, economic data releases from the United States have shown mixed results. Initial jobless claims decreased slightly but remained historically low at 224,000 for the week ending March 22; however, there is anticipation surrounding today's final Q4 GDP revision that could provide further insights into economic growth amid ongoing uncertainties related to trade policies.

The European markets reacted negatively following these developments with notable drops across key indices like Germany's DAX and France's CAC due primarily to fears that increased tariffs will significantly harm their economies given their reliance on exports. The Eurozone faces additional pressure as expectations grow regarding possible easing measures from the ECB amidst rising inflation risks linked directly back to these new tariff implementations.

SPDR Gold Shares (GLD) [+1.1%]
SPDR Gold Shares (GLD) experienced a price increase of 1.2% as gold surged over $40 per ounce, reaching a new all-time high of $3,062. This rise reflects heightened demand for gold amid ongoing market volatility and geopolitical concerns, particularly related to U.S. tariffs on auto imports. Earlier today, gold was trading higher at approximately $3,077.64, demonstrating strong performance in fluctuating market conditions. Social media discussions have noted this surge, attributing it to increased safe-haven demand driven by tariff fears. Additionally, President Trump's recent announcement of a new 25% tariff on all auto imports has intensified concerns regarding inflation and economic growth, further boosting demand for gold as a protective asset against potential market instability.

iShares 20+ Year Treasury Bond ETF (TLT) [-0.6%]
The iShares 20+ Year Treasury Bond ETF (TLT) has declined by 0.6% since the previous close. The 10-year Treasury yield rose significantly, while the 2-year yield also increased, indicating tightening in bond markets that typically pressures long-duration bond ETFs like TLT. S&P Global projected a slowdown in U.S. economic growth for 2025, with GDP growth expected to decline, reflecting ongoing inflationary pressures and a challenging trade environment. Social media discussions highlighted TLT's price movement, referencing Jefferies' report of a notable drop in Q1 profits linked to declining bond trading. Fundstrat's bullish reversal calls contrasted with falling growth stocks, including TLT. Additionally, TLT was among the top three trending stocks after hours, suggesting heightened engagement around its performance amidst broader market volatility. Concurrently, the US 30Y Treasury Bond dropped significantly, following President Trump's tariff announcement, raising concerns about inflationary pressures and economic growth prospects.

GM | -6.0% | -3.3B
General Motors Co | Automobile Manufacturers
General Motors Co. is experiencing significant downward pressure following President Trump's announcement of a 25% tariff on imported vehicles, effective April 2. This news has led to a notable decline in GM's stock, which dropped significantly in after-hours trading. The tariffs are expected to impact over 7 million imported vehicles sold in the U.S. last year, raising concerns about increased vehicle prices and reduced production at overseas plants. Analysts warn that these tariffs could severely affect profit margins for automakers, including GM. Social media discussions reflect heightened anxiety regarding GM's financial outlook, with reports of losses nearing 8%. Some users speculate that the tariffs could cost GM up to $14 billion, potentially erasing its global profits. This climate of uncertainty is further intensified by the broader implications of trade policies on the automotive industry.

JEF | -4.4% | -539.1M
Jefferies Financial Group Inc | Investment Banking & Brokerage
Jefferies Financial Group Inc reported disappointing Q1 results, with earnings per share of $0.57, significantly below the expected $1.02, and revenue of $1.59 billion compared to the forecasted $1.93 billion. This represents an 8% year-over-year decline in revenue and a 14.5% decrease in profit from the prior year. Investment banking net revenues fell to $701 million from $727 million year-over-year, while asset management revenues dropped by 53%. Following the earnings announcement, shares declined sharply in after-hours trading. Social media discussions highlighted the company's challenges, with CEO Rich Handler and President Brian Friedman citing increasing difficulties in capital markets due to uncertainties surrounding U.S. policy and geopolitical events. Additionally, a 15% decline in Q1 profit was attributed to slumping bond trading and stalled equity deals amid trade policy turmoil.

GME | -7.7% | -614.9M
GameStop Corp | Computer & Electronics Retail
GameStop Corp is experiencing a notable decline, with its stock price dropping significantly amid a broader downturn in the Computer & Electronics Retail sector. The company announced a proposed private offering of $1.3 billion in 0.00% convertible senior notes due 2030, aimed at qualified institutional buyers under Rule 144A of the Securities Act. The net proceeds from this offering are intended for general corporate purposes, including acquiring Bitcoin. Following this announcement, GameStop's stock price fell approximately 7%. Social media discussions highlighted concerns regarding potential dilution of shareholder value due to this offering, alongside skepticism about the decision to incur debt rather than utilize existing cash reserves. Despite an initial increase in stock price during regular trading hours, the shares faced a subsequent drop in after-hours trading.

AMD | -3.1% | -5.4B
Advanced Micro Devices Inc | Semiconductors
Advanced Micro Devices Inc. is experiencing negative sentiment following a downgrade to "hold" with a price target of 120 from analysts at Jefferies. This downgrade is attributed to increasing competition within the semiconductor sector. Additionally, AMD has been included in U.S. export restrictions affecting 80 Chinese tech firms due to security concerns, following the Trump administration's addition of 54 Chinese entities to an export restriction list. Furthermore, Nvidia Corp.'s potential acquisition of Lepton AI has raised concerns regarding inventory risks, which may reflect broader challenges within the semiconductor industry that could indirectly affect AMD's market position.

NVDA | -1.8% | -50.6B
NVIDIA Corp | Semiconductors
NVIDIA Corp is experiencing a decline, moving lower alongside the Semiconductors sector. A recent warning from China's H3C indicates a significant depletion of inventory for NVIDIA's H20 AI chips, essential for domestic demand, with new shipments not expected until mid-April. This situation highlights ongoing supply chain strains amid rising demand. Additionally, short seller Jim Chanos has raised concerns regarding NVIDIA's potential acquisition of Lepton AI, suggesting it may reflect underlying financial issues related to inventory management. Social media discussions reveal apprehension about NVIDIA's market positioning, with notable warnings from Jim Cramer about potential volatility. Analysts have also pointed to Microsoft's pullback from data center leases as contributing to broader tech sell-offs impacting NVIDIA. Furthermore, Advanced Micro Devices Inc has seen a decline, which may influence NVIDIA's performance given their historical correlation.

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