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Tuesday, April 1

Noteworthy macro moves today: US 10Y Treasury Bond +0.3%. Noteworthy US mega-cap moves today: Visa Inc (V) -0.7%. JPMorgan Chase & Co (JPM) -0.6%. 

Recent market movements are heavily influenced by the impending announcement of reciprocal tariffs from U.S. President Donald Trump, scheduled for April 2nd, which he has dubbed "Liberation Day." This development is causing significant uncertainty in global markets as investors brace for potential retaliatory measures from trading partners such as China and the European Union. The proposed tariffs could impact a wide range of imports and have raised concerns about escalating trade tensions that may hinder economic growth.

In addition to tariff-related anxieties, recent economic data releases indicate mixed signals within major economies. In Europe, annual inflation eased slightly to 2.2% in March while unemployment fell to a new low of 6.1%. However, manufacturing activity remains subdued with PMIs indicating continued contraction across several countries including Germany and Italy—factors contributing to cautious sentiment among investors regarding future monetary policy decisions by central banks like the ECB.

Market reactions reflect this volatility; equity indices showed varied performance amid these developments—with some sectors gaining ground while others faced declines due primarily to fears surrounding Trump's policies on international trade relations. Additionally, gold prices reached record highs amidst increased demand for safe-haven assets during periods marked by geopolitical tension and financial instability linked directly back to anticipated changes in U.S.-China relations stemming from upcoming tariff announcements.

Bitcoin (BTC/USD) [+1.7%]
Bitcoin has increased today, buoyed by the Trump family's new venture, 'American Bitcoin', which has intensified engagement in Bitcoin mining. This development coincides with significant movements reported on social media, including U.S. Senator David McCormick's $600,000 investment in a Bitwise BTC ETF and a proposal for the U.S. Treasury to issue $200 billion in BTC-backed bonds. In Japan, Metaplanet acquired 696 BTC, raising its total holdings to 4,046 BTC, while also planning to issue ¥2 billion in zero-coupon convertible bonds for further Bitcoin purchases. Tether has also made headlines by purchasing 8,888 BTC, valued at approximately $735 million, thus becoming the sixth-largest holder in a single wallet. Despite these positive developments, analysts have cautioned about potential market risks stemming from inflation data and geopolitical tensions related to tariff policies, which could impact Bitcoin's recent rally.

Health Care Select Sector SPDR Fund (XLV) [-0.6%, -237.4M]
In pre-market trading, the Health Care Select Sector SPDR Fund (XLV) has seen a decline of 0.6% since Monday. Notably, Johnson & Johnson (JNJ) experienced a significant drop following the dismissal of its talc-related lawsuits resolution attempt. This setback contributed to a notable negative performance for the stock. Other top contributors to XLV's decline include Eli Lilly (LLY), Vertex Pharmaceuticals (VRTX), Thermo Fisher Scientific (TMO), and Stryker (SYK), all of which also posted losses. Vertex Pharmaceuticals is currently facing mixed analyst sentiment, with recent price targets showing some positive adjustments. Additionally, TMO has appointed a new board member from Thermo Fisher Scientific, effective immediately. Social media discussions highlighted XLV among other assets following market hours yesterday, although access to related content was restricted.

JNJ | -3.9% | -15.0B
Johnson & Johnson | Pharmaceuticals
Johnson & Johnson's stock has dropped significantly following the U.S. Bankruptcy Court's dismissal of its third attempt to resolve talc-related lawsuits through Chapter 11. Judge Christopher Lopez ruled the bankruptcy filing flawed, halting the company's strategy to settle allegations linking its talc products to cancer. As a result, J&J will revert to civil courts for litigation and plans to reverse approximately $7 billion previously allocated for bankruptcy resolution. Analysts have noted a marked decline in the company's market capitalization in response to earlier unfavorable rulings. Additionally, social media discussions highlighted a 3.5% decrease in JNJ's stock price after the rejection of a $10 billion settlement plan. This comes amid broader industry conversations regarding potential tariff increases on pharmaceuticals as the Trump administration prepares to implement a 25% tariff.

XPEV | +3.1% | +1.3B
Xpeng Inc | Automobile Manufacturers
Xpeng Inc (XPEV) has experienced a notable price increase, aligning with a significant upward movement in the Automobile Manufacturers sub-sector. The company reported impressive vehicle delivery results, with 33,205 Smart EVs delivered in March, reflecting a substantial year-over-year increase. This marks the fifth consecutive month of surpassing 30,000 units. For the first quarter of 2025, Xpeng delivered a total of 94,008 Smart EVs, a remarkable growth compared to the same period last year. Additionally, the company launched upgraded versions of its G6 and G9 models, featuring advanced AI capabilities. The urban driving system, XNGP, achieved an 86% monthly active user penetration rate. Furthermore, Xpeng expanded its market presence by entering Indonesia, enhancing its global footprint.

UMC | -3.1% | -2.7B
United Microelectronics Corp | Semiconductors
United Microelectronics Corporation (UMC) has announced the opening of a new fabrication facility in Singapore, set to begin volume production in 2026. This facility aims to enhance UMC's production capacity in Singapore to over 1 million wafers annually, with an initial investment of up to $5 billion for the first phase, targeting 30,000 wafers per month. The facility will employ advanced 22nm and 28nm manufacturing processes, serving sectors including communications, IoT, automotive, and AI. It is expected to create approximately 700 local jobs and has been designed with sustainability in mind, achieving Green Mark GoldPlus certification and incorporating solar panels to support UMC's goal of being powered by renewable energy by 2050. Additionally, social media discussions have highlighted that GlobalFoundries is considering a potential merger with UMC.

INTC | -1.3% | -1.3B
Intel Corp | Semiconductors
Intel Corp's stock has dropped significantly, moving in tandem with the broader market decline. The upcoming announcement of reciprocal tariffs by U.S. President Donald Trump is generating considerable uncertainty among investors, particularly regarding trade relations with major economies. Concurrently, recent economic data from Europe shows a slight easing in annual inflation and a record low unemployment rate, suggesting some resilience in the Eurozone despite tariff threats. Manufacturing activity indicators reveal mixed results, with Germany's Manufacturing PMI indicating contraction while France's index remains below expansion levels. Additionally, at the Intel Vision 2025 conference, CEO Lip-Bu Tan outlined a strategic shift focusing on divesting non-core businesses and enhancing engineering culture to attract top talent. This includes a collaboration with IBM for the deployment of Intel Gaudi 3 AI accelerators on IBM Cloud, aimed at improving enterprise AI capabilities.

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