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China says ‘market has spoken’ after US tariffs spark selloff

BEIJING: China said on Saturday (Apr 5) “the market has spoken” in rejecting US President Donald Trump’s tariffs, and called on Washington for “equal-footed consultation” after global markets’ dramatic reaction to the trade levies, which drew Chinese retaliation. Several Chinese commerce associations in industries from healthcare and textiles to electronics also issued statements on Saturday calling for unity in exploring alternative markets and warning that the tariffs would worsen inflation in the US. “The market has spoken,” Chinese foreign ministry spokesperson Guo Jiakun said in a post on Facebook on Saturday morning. He also posted a picture capturing Friday’s falls on US markets. Trump introduced additional 34 per cent tariffs on Chinese goods as part of steep levies imposed on most US trade partners, bringing the total duties on China this year to 54 per cent. Trump also closed a trade loophole that had allowed low-value packages from China to enter the US duty-free. This prompted sweeping retaliation from China on Friday, including extra levies of 34 per cent on all US goods and export curbs on some rare earths, escalating the trade war between the world’s two largest economies. However, Hong Kong Financial Secretary Paul Chan told public broadcaster RTHK that Hong Kong would not impose separate countermeasures, citing the need for the city to remain “free and open”. Global stock markets plummeted following China’s retaliation and Trump’s comments on Friday that he would not change course, extending sharp losses that followed Trump’s initial tariff announcement earlier in the week and marking the biggest losses since the pandemic. For the week, the S&P 500 was down 9 per cent. “Now is the time for the US to stop doing the wrong things and resolve the differences with trading partners through equal-footed consultation,” Guo wrote in English. China’s chamber of commerce representing traders in food products called on “China’s food and agricultural products import and export industry to unite and strengthen cooperation to jointly explore domestic and foreign markets”. The metals and chemicals traders’ chamber said the tariffs “will push up the import cost for US importers and the consumption cost for consumers, exacerbate domestic inflation in the US, and increase the possibility of a US recession”. Trump’s broadest tariffs to date took effect on Saturday, with a 10 per cent “baseline” tariff hitting most US imports except goods from Mexico and Canada. Dozens of economies, including China, face even higher rates from Apr 9. The US also said on Wednesday that it will end the tax exemption for packages worth less than US$800 from the Chinese mainland and Hong Kong, starting May 2. Those products will be subjected to a duty rate of 30 per cent of their value, or US$25 per item. The China Express Association, on behalf of China’s postal and express delivery enterprises, expressed firm opposition to the US move to cancel duty-free treatment for low-value packages from China, according to its statement issued on Thursday. The association said that cross-border e-commerce packages from China have helped American consumers meet their personalised consumption needs, reduce their living costs and improve their quality of life, adding that the move will harm the interests of consumers in the United States, especially families and young people, who rely on cross-border e-commerce shopping. “We hope the United States will correct its wrong practice and take necessary measures to create a fair and predictable policy environment for the development of cross-border e-commerce and delivery,” the association said.
George by — April 06, 2025 By George in Market Watch
Dow plunges 2,200 points as tariff tumult rocks markets

US stocks were battered by a steep sell-off Friday after China retaliated against the United States for President Donald Trump’s tariffs in a tit-for-tat that escalates a global trade war. The Dow plunged by 2,231 points, or 5.5%. The broader S&P 500 was 5.97% lower. The tech-heavy Nasdaq Composite was 5.82% lower. The Nasdaq closed in a bear market for the first time since 2022, down more than 20% from its record high in December. The Dow closed in correction, down more than 10% from its record high in December. It is the first time the Dow has closed in correction since March 7, 2022, according to Sam Stovall, chief investment strategist at CFRA Research. The Dow posted its biggest back-to-back losses since March 2020, during the onset of the Covid-19 pandemic. The S&P 500 shed $5.06 trillion in market value across the past two days, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. The benchmark index, which entered correction Thursday, sank more than 10% over the past two days. Investors have been fearful that a dramatic escalation of a trade war could plunge the US and global economies into a recession. JPMorgan analysts said Thursday that America’s economy and the broader world economy both had a 60% chance of sinking into a recession this year. The analysts also said odds of a recession would rise if countries began to retaliate against the United States — and China did so Friday. Retaliation raises the risk of further escalation and could diminish hopes for negotiation. “Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade,” said Matt Burdett, head of equities at Thornburg Investment Management. “The tariffs have injected a level of uncertainty and volatility we haven’t seen since the early days of the pandemic.” US stocks briefly rallied from their lowest point of the morning after Trump posted on social media that he had a “very productive call” with To Lam, the general secretary of the Communist Party of Vietnam. “(Lam) told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S. I thanked him on behalf of our Country, and said I look forward to a meeting in the near future,” Trump said. Nike (NKE), which slumped Thursday, rallied 3%. Nike relies extensively on international supply chains and imports from Vietnam, where many of its factories are located. Yet stocks eventually slid to their lows of the day as investors grappled with the extent of Trump’s tariffs and the potential for a slowdown in economic growth. Federal Reserve Chair Jerome Powell said during prepared remarks Friday that inflation could remain elevated because of Trump’s tariffs. “While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected. The same is likely to be true of the economic effects, which will include higher inflation and slower growth,” said Powell, who spoke at an event just outside Washington, DC. “The size and duration of these effects remain uncertain.”

Tariff anxiety roils Wall Street

Investors Friday morning wrestled with tariff anxiety while also digesting fresh data that showed stronger-than-expected job growth in March. The US economy added 228,000 jobs in March, a significant increase from February’s revised gains of 117,000, according to Bureau of Labor Statistics data released Friday. While job growth beat expectations, tariff angst continues to drive market sentiment. “Unfortunately, the market is no longer focused on the jobs market and focused squarely on tariffs and trade wars as the US plays chicken with the rest of the world, potentially beginning a downward spiral into a worldwide recession,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. Traders ditched risky stocks, especially tech companies whose products are manufactured overseas and could soon be subject to enormous tariffs. Apple (AAPL), which tumbled more than 9% Thursday, was down another 7.3% Friday. As stock futures tumbled ahead of the opening bell, Trump posted on social media, “To the many investors coming into the United States and investing massive amounts of money, my policies will never change. This is a great time to get rich, richer than ever before!!!” Wall Street’s fear gauge, the Cboe Volatility Index, or VIX, surged 50%. “Extreme fear” was the sentiment driving markets, according to CNN’s Fear and Greed index, which slumped to its lowest level this year as investors braced for an escalating global trade war. And as investors sold stocks, they poured money into traditional safe havens, including government bonds. The 10-year Treasury yield, which briefly fell below 4% Thursday for the first time since October, fell firmly below 4% Friday as investors bought bonds to insulate themselves from a potential economic downturn. Bond prices and yields trade in opposite directions. Gold prices surged above $3,130 a troy ounce Friday morning, setting another record, before sliding to around $3,030. Gold has soared this year as investors seek out safe havens. Investors ditched other commodities, including oil, out of fear that the trade war could send the global economy into a recession. US oil, which plunged nearly 7% Thursday, tumbled another 7.4% to $61.99 a barrel. Brent oil futures, the global benchmark, fell 6.5%. Both US oil and the global benchmark settled at their lowest level since 2021.

China retaliates against Trump’s tariffs

China announced sweeping 34% tariffs on all US goods starting April 10, a major escalation of a trade war that has been raging for years between the world’s two largest economies. But the tit-for-tat tariff escalation kicked into high gear after Trump took office for the second time in January. Trump in February placed an additional 10% tariff on all Chinese goods imported to the US and doubled that rate to 20% in March. On Wednesday, Trump announced that tariffs on China would rise to 54%. That’s on top of existing import taxes, which he and former President Joe Biden already had in place on the country. So the effective tariff rate America imposes on Chinese goods will be well above 54% starting April 9. Markets have been on edge: The Russell 2000, which tracks smaller companies, entered a bear market Thursday. Stocks tumbled all over the world Friday. Europe’s benchmark STOXX 600 index dropped 5.12%, and London’s benchmark FTSE 100 index fell 4.95%, both posting their biggest single-day declines since 2020. Japan’s Nikkei 225 index fell 2.75% after falling 2.77% on Thursday. On Thursday, the Dow fell more than 1,600 points, or nearly 4%. The S&P 500 fell nearly 5% and the Nasdaq plunged nearly 6%. Each of the three major US indexes recorded its worst performance in about five years, since the Covid-19 pandemic. “This is just the tip of the spear. Next it’s going to be retaliation from the EU and other nations. Banks, airlines and other service sector firms are going to get targeted,” said RSM’s Joe Brusuelas. “The Chinese are calling Trump’s bluff.” UBS on Friday lowered its year-end target for the S&P to 5,800 from 6,400 and said the US economy could enter recession in the near-term due to the impact of Trump’s tariffs. “In the near term, we believe the effective tariff rates could be higher still, and without President Trump taking active steps to reduce tariffs over the next three to six months, we are likely to enter a downside scenario, including a meaningful US recession and lower equity markets,” said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, in a note Friday.

Negotiations or more tariffs?

Trump said Thursday after the market close that he was open to negotiation on trade. He cited TikTok as an example, hoping China would agree to a sale of the popular social media app to a potential US buyer in exchange for lower tariffs. “Every country has called us. That’s the beauty of what we do, we put ourselves in the driver’s seat,” Trump told reporters aboard Air Force One Thursday. “As long as they are giving us something that’s good. For instance, with TikTok as an example, we have a situation with TikTok where China will probably say, ‘We’ll approve a deal, but will you do something on the tariffs?’ The tariffs give us great power to negotiate. They always have.” Some countries say they’re in active negotiations with the United States to lower the tariff barriers Trump announced this week. The United Kingdom, for example, said it is in talks with the United States to strike an economic agreement, British Foreign Minister David Lammy said on Friday. But other countries chose to retaliate. Canada on Thursday announced retaliatory tariffs on some US-made cars. France’s finance minister said the European Union was not considering reciprocal tariffs to respond to the Trump administration’s tariffs, because they could hurt European consumers, but the EU could target individual US companies, Eric Lombard said in an interview Friday with CNN affiliate BFMTV. The New York Times on Thursday reported the EU was considering penalties against Tesla. Trump on Thursday dismissed the massive declines in the stock market, saying it’s “to be expected” and that the economy is in a “transition period.” He called the economy a “sick patient.”
George by — April 06, 2025 By George in Market Watch
Automakers seek ‘opportunity in the chaos’ of Trump’s tariffs

DETROIT — As President Donald Trump’s 25% tariffs on imported vehicles were set to take effect, executives at Ford Motor scrambled to figure out how to respond to the new levies. While they and their industry counterparts are still trying to navigate the impacts, Ford decided to move quickly in one area by offering an employee pricing program — called “From America, For America” — for U.S. consumers. Such programs have historically been controversial, as they sell vehicles close to or lower than invoice prices for dealers and eat away at already tight profit margins for the retailers. But Ford decided the time was right to launch the program to promote its U.S. operations — the largest among automakers — and assist sales amid consumer concerns and economic uncertainty due to Trump’s tariffs. “We understand that these are uncertain times for many Americans. Whether it’s navigating the complexities of a changing economy or simply needing a reliable vehicle for your family, we want to help,” Ford said in a statement Thursday morning announcing the program. “We have the retail inventory to do this and a lot of choice for customers that need a vehicle.” It’s an example of how some automakers are attempting to find “opportunity in the chaos” or trying to “capitalize on the moment” amid the tariffs, as several industry analysts told CNBC. “I absolutely love it. I think it’s going to drive sales,” said Ford dealer Marc McEver, owner of Olathe Ford Lincoln near Kansas City, Kansas. “It’s really exciting to see Ford step up and take the lead on this program. I think it’s a great play. … It’s truly a real deal for the customer.” Ford, which is helping retailers financially with the program, told dealers about it a day ahead of the tariffs taking effect Thursday. It publicly announced the new program — which runs through June 30 — hours after the levies began. Heading into the tariffs, Ford also was largely viewed by Wall Street analysts as being one of the best-positioned automakers because of its large U.S. production footprint, specifically for trucks. Ford’s stock fared better than its rivals this week, closing the week down by 1.4%. That compares with Chrysler parent Stellantis losing 14.2% and General Motors dropping 5.4% for the week. Others are following Ford’s strategy, which also is assisted by vehicle prices and profits being higher since the Covid pandemic. Crosstown rival Stellantis on Friday announced a similar employee-pricing program, while Hyundai Motor said it would not raise prices for at least two months to ease consumer concerns. “It makes sense that they would try to capitalize on the moment,” said Erin Keating, executive analyst at Cox Automotive. Keating points out that with Ford and Stellantis — the latter of which is based in Europe but has major operations and brands in the U.S. — it’s a reminder to consumers that they’re “domestic” companies. The automakers also have inventory, including older models, that they need to sell to make way for newer vehicles. “Making room for those new vehicles to come into the showroom and trying to maintain that market share makes a lot of sense,” Keating said. “Anyone who’s able to beat the price out there right now, with the level of demand, is going to be able to hold on to their market share longer than others, and perhaps capture something from those that aren’t willing to meet the customer where they are right now.” Ford and Stellantis brands such as Ram Trucks and Jeep have among the highest days’ supply of vehicle inventories in the automotive industry, according to Cox Automotive. The two companies also were among the only major automakers this week to report notable drops in first-quarter vehicle sales. Stellantis was off roughly 12%, while Ford was down 1.3% from a year earlier. Cox reports the national days’ supply vehicle average was 89 days, while those brands were between 110 days and 130 days. The auto industry has historically considered a healthy days’ supply to be between 60 days to 80 days. In light of the tariffs and fears for potential price increases, demand for vehicles has been high. Consumers flocked to dealer showrooms at the end of last month as Trump confirmed the tariffs would be coming, leading to significant sales gains for many automakers. Cox Automotive estimated new-vehicle sales in March hit 1.59 million units sold, significantly exceeding its forecast and marking the best month for sales volume in four years. “The last week, and including this past weekend, was by far the best weekend that I’ve seen in a very long time,” Hyundai Motor North America CEO Randy Parker said Tuesday during a media call. “I’ve been doing this now for a very, very long time. So, lots of people, I think, rushed in this weekend, especially, to try and beat the tariffs.” Selling now because future sales aren’t guaranteed also could assist if there’s a U.S. recession. J.P. Morgan on Friday raised its odds for a U.S. and global recession from a 40% chance to 60% chance by the end of the year. “Because the demand is there right now, it makes sense [to offer consumer incentives] because everyone’s saying, ‘Gotta go get it now,’ might as well go ahead and reap the benefits now in case we do go into a recession,” Keating said.
George by — April 06, 2025 By George in Business News
Higher prices are likely for these 10 grocery items when tariffs hit

A trip to the grocery or liquor store is about to become even more expensive, economists say, following the latest round of import tariffs announced by President Trump on Wednesday. Those tariffs — taxes paid by businesses on goods from abroad — come on the heels of a previous round aimed specifically at Canada, Mexico and China. Prices for items such as seafood, coffee, wine, nuts and cheese are all expected to rise. And if you’re tempted to grab a candy bar while you’re in the checkout line, you’ll probably have to pay more for that as well. Food industry analyst Phil Lempert, also the editor of supermarketguru.com, estimates that with the latest tariffs “probably almost half of the products in a supermarket — about 40,000 products — will be affected by these tariffs, whether it’s the entire product or just an ingredient.” Joseph Balagtas, a professor of agricultural economics at Purdue University, says food prices will also be affected by other factors related to tariffs, such as higher costs for fertilizer from Canada and a weaker U.S. dollar. “A main takeaway here is that the country-specific, food-specific tariffs will not tell the whole story,” he says. “This is such a big change in policy that there will be broader implications.” It’s impossible yet to know how much the tariffs will affect prices, but with the 10% tariff for many countries and higher “reciprocal tariffs” on other nations, the tariff rates by country could provide some clues. Here are 10 grocery items you might want to keep an eye on and their country of origin (with tariff rates in parentheses).

Seafood

Some top sources: Chile (10%), India (26%), Indonesia (32%) and Vietnam (46%) are the largest suppliers, according to the U.S. Department of Agriculture. This category is likely to take a big hit because the U.S. imports the vast majority of its seafood — up to 85% according to the National Oceanic and Atmospheric Administration — and several countries that supply fish and shellfish to the U.S. have been among the hardest hit by the tariffs.

Coffee

Top sources: Brazil (10%) and Colombia (10%), according to USDA. The U.S. is the world’s largest importer of coffee, with about 80% of U.S. roasted imports coming from Latin America. More than 60% comes from just two countries — Brazil and Colombia, USDA says.

Fruit

Some top sources: Guatemala (10%), Costa Rica (10%) and Peru (10%) Guatemala and Costa Rica are leading exporters of bananas to the U.S. Guatemala also ships melons, plantains and papayas, according to USDA, while Costa Rica exports pineapples, avocados and mangoes. “These products don’t have a long shelf life, and with the tariffs, we’re going to face significant issues with both price and availability,” Lempert says.

Alcohol

Top sources for wine: the European Union — France, Italy and Spain (20%). New Zealand (10%) and Australia (10%), according to USDA. Top sources for beer: Mexico (25%), the Netherlands and Ireland (both with the EU’s 20% tariff) and Canada (25%) If your favorite summer beverage is Modelo, Corona, Heineken or Guinness, you’ll likely be paying more. Tequila imports from Mexico have also seen a surge in recent years and will be affected by the tariffs. Lempert says the imported alcohol sector is likely “to be clobbered.” He also notes that beer sold in cans is also going to get a double hit due to tariffs on China and other aluminum producers.

Beef

Some top sources: New Zealand (10%) and Australia (10%), according to USDA. Although 90% of beef consumed in the U.S. is domestically produced, tariffs will likely add to existing price pressures. The cost of ground beef for consumers, for example, is already at historic highs and according to the USDA, the U.S. cattle herd is the smallest it’s been since 1951.

Rice

Top sources: Thailand (36%) and India (26%), according to USDA. Although most rice sold in the U.S. is domestically produced, nearly a third is imported, mainly jasmine rice from Thailand and basmati rice from India.

Cheese

Top sources: Italy, France, Spain and the Netherlands (all subject to 20% EU tariff), according to USDA. Parmigiano-Reggiano, brie and Gouda could also see price rises.

Nuts

Top sources: Vietnam (46%), Côte d’Ivoire (21%), Brazil (10%), Thailand (36%), according to the World Bank. Cashews, pecans and macadamia nuts are likely to see the largest price increases.

Chocolate

Top source: Côte d’Ivoire (21%) and Ecuador (10%), according to USDA. The Hershey Company, one of the largest U.S. importers of cocoa beans, says it sources its supply from Brazil, Cameroon, Côte d’Ivoire, Colombia, Dominican Republic, Ecuador, Ghana, Indonesia, Nigeria, Papua New Guinea and Peru. NPR reached out to Hershey, which makes Reese’s Peanut Butter Cups and Kit Kat bars, among others, to inquire about future price increases. A spokesman for Hershey, Todd Scott, said the company could not comment because it is in an earnings window. However, Lempert says the tariffs come on top of “serious increases in cocoa beans for probably the past two or three years because of the weather and the political climate in … Africa.”

Olive oil

Top sources: European Union (20%), particularly Spain, Italy and Greece. “Olive oil prices have gone through the roof,” Lempert says. “They’re going to go even higher.”
George by — April 06, 2025 By George in Business News
Retirees ‘stunned’ as market turmoil over tariffs shrinks their 401(k)s

Americans nearing retirement and recent retirees said they were anxious and frustrated following a second day of market turmoil that hit their 401(k)s after President Donald Trump’s escalation of tariffs.

As the impending tariffs shook the global economy Friday, people who were planning on their retirement accounts to carry them through their golden years said the economic chaos was hitting too close to home.

Some said they are pausing big-ticket purchases and reconsidering home renovations, while others said they fear their quality of life will be adversely affected by all the turmoil.

“I’m just kind of stunned, and with so much money in the market, we just sort of have to hope we have enough time to recover,” said Paula, 68, a former occupational health professional in New Jersey who retired three years ago.

Paula, who spoke on the condition of anonymity because she feared retaliation for speaking out against Trump administration policies, said she was worried about what lies ahead.

“What we’ve been doing is trying to enjoy the time that we have, but you want to be able to make it last,” Paula said Friday. “I have no confidence here.”

Trump fulfilled his campaign promise this week to unleash sweeping tariffs, including on the United States’ largest trading partners, in a move that has sparked fears of a global trade war. The decision sent the stock market spinning. On Friday afternoon, the broad-based S&P 500 closed down 6%, the tech-heavy Nasdaq dropped 5.8%, and the Dow Jones Industrial Average fell more than 2,200 points, or about 5.5%.

As Wall Street reeled Friday after China hit back with tariffs against the U.S., millions of Americans with 401(k)s watched their retirement funds diminish along with the stock market.

“I looked at my 401(k) this morning and in the last two days that’s lost $58,000. That’s stressful,” said Victor Fettes, 54, of Georgia, who retired last week as a senior director of risk management and compliance at Verizon. “If that continues, I can’t stay retired.”

Trump has said the tariffs will force businesses to relocate manufacturing and production back to the U.S. and bring back jobs. Some investors and business groups have pushed back, saying they are likely to lead to higher prices for U.S. consumers.

“Our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said recently. “But it is not going to happen anymore.”

The president has acknowledged the potential pain coming to some Americans’ wallets, but he continues to staunchly defend his agenda.

“MY POLICIES WILL NEVER CHANGE,” he posted to social media Friday. Later, he wrote, “ONLY THE WEAK WILL FAIL.”

Trump’s tariffs are steeper and more widespread than any in modern American history. They are potentially even broader than the tariffs of 1930 that historians said worsened the Great Depression.

Some Americans thinking about retirement told NBC News they feel their economic stability is being played with.

George by — April 05, 2025 By George in World News
Microsoft, turning 50, dials up Copilot actions to stay in AI game

REDMOND, Wash, April 4 (Reuters) – Thousands of people swooned in a dark conference hall that felt more like a rock concert when a Microsoft (MSFT.O), opens new tab product manager demonstrated the company’s latest feature: how to sum numbers in Excel, with the click of a button. “It was literally like Mick Jagger walked out,” said Yusuf Mehdi, Microsoft’s consumer chief marketing officer, who started as an intern. That was more than 30 years ago. On Friday, the day Microsoft turned 50, the company’s leaders and staff gathered at its headquarters in Redmond, Washington, to remember the software maker’s glory days while trumpeting what they hope will bring it into the future: more powerful artificial intelligence. Copilot, Microsoft’s AI assistant, is gaining a host of new features to make it more proactive. The version for consumers will start remembering personal facts about them. It will offer birthday reminders or support ahead of a presentation, or consumers can opt out, Mehdi said in an interview. Copilot likewise will personalize podcasts and shopping recommendations, and it will let consumers task their AI to make reservations for them. “It frees you up,” said Mehdi. Microsoft is hardly first to roll out action-taking or “agentic” software. As with rival systems, the AI will work best on popular sites where Microsoft has done some behind-the-scenes technical work, like with 1-800-Flowers.com and OpenTable, Mehdi said. Mehdi recalled days when Microsoft was smaller and growing. He said CEO Bill Gates could devour three books’ worth of information from one day to the next, at a time when the co-founder still worked on Microsoft software. Mehdi watched Steve Ballmer, Gates’ eventual successor, chant “developers, developers, developers!” in a sweat-drenched shirt to rouse a crowd into the “.net” era. Microsoft went from top of the pack to badly bruised in a high-profile lawsuit that U.S. antitrust enforcers brought against it in 1998. Years later, younger companies and startups, among them Alphabet (GOOGL.O), opens new tab and ChatGPT maker OpenAI, beat it to the punch on key AI developments. Satya Nadella, Microsoft’s current CEO, is not standing still. The leader who turned Microsoft into the No. 2 cloud powerhouse challenged his executives at an internal summit this week, recalled Mehdi: “How do we rethink the way that we build the software?” Nadella voiced a similar view at Microsoft’s Redmond event on Friday, where he, Gates and Ballmer made a rare joint public appearance. Ballmer reprised his “developers!” chant as well. Nadella said the company was not simply celebrating its past 50 years but creating a future defined by “what we empower others to build.” Gates said, “We’re on the verge of something even more profound than what came for those first 50 years.” Asked what he wished for Microsoft at age 100, he said: “I hope Copilot’s a good CEO.” Microsoft is iterating on its chatbot technology in a crowded field that includes Elon Musk’s xAI and Anthropic. It has added Copilot to its heavily used productivity suites for business while giving consumers a distinctive version. “It’s warm; it has that personality,” said Mehdi. Some users have taken to this, while others find it asks too many questions, he said. “When we get to now be more personalized, we can start to get smarter,” Mehdi said. “We’re part way through that journey.”
George by — April 05, 2025 By George in World News
Stock market rout deepens as Dow plunges more than 2,200 points and Nasdaq enters bear market

Financial markets ended a tumultuous week with a thud, as stocks tumbled for a second straight day on concerns about the economic fallout from new U.S. tariffs and the prospects of a global trade war.

President Trump’s announcement of steep tariffs on Wednesday shocked investors and sent economists scurrying to revise downward their forecasts for U.S. economic growth. Federal Reserve Chair Jerome Powell also warned that the levies — which include a 10% universal duty on all U.S. imports and “reciprocal” tariffs on nearly 90 countries — are likely to dent the economy.

“While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected,” Powell said in a speech Friday in Arlington, Virginia. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”

The S&P 500 fell 322 points, or nearly 6%, to close at 5,074 — the largest one-day slump in the broad-based index since March 16, 2020, when it lost 12%. Today’s plunge erased $2.7 trillion in market value from the index. The decline wipes out more than a year of stock market gains, taking the S&P 500 back to its levels in February 2024.

The Dow Jones Industrial Average sank 2,231 points, or 5.5%, and is down 14% since peaking in February. The Nasdaq Composite slid 963 points, or 5.8%. That means the the tech-heavy index is now in a bear market, or when stocks drop at least 20% from their most recent high.

Tech stocks have flailed this week because of concerns that American tariffs on China — along with countermeasures from Beijing — will hurt the high-tech sector, which has been key to driving corporate profits.

“The economic pain that will be brought by these tariffs [is] hard to describe and can essentially take the U.S. tech industry back a decade in the process while China steamrolls ahead,” Dan Ives of Wedbush Securities said in a report.

Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management, told clients that the U.S. could tip into a recession later this year unless the U.S. moves to ease tariffs.

“In the near term, we believe the effective tariff rates could be higher still, and without President Trump taking active steps to reduce tariffs over the next three to six months, we are likely to enter a downside scenario, including a meaningful U.S. recession and lower equity markets,” he said in a research note.

The free-fall amounts to the biggest two-day drop for the S&P 500 and Nasdaq since March 2020, when the pandemic began, and has wiped out trillions of dollars in investor wealth.

Drops of this magnitude aren’t unheard of on Wall Street, but they’re rare. Over the last 25 years, the S&P 500 has fallen 4% in a single day 38 times, according to Adam Turnquist, chief technical strategist for brokerage firm LPL Financial.

Overseas markets also slid Friday. In overnight trading in Asia, Tokyo’s Nikkei 225 dropped 2.8%, while South Korea’s Kospi sank 0.9%. In European trading, Germany’s DAX lost 2%, France’s CAC 40 in Paris dipped 1.6% and Britain’s FTSE 100 shed 1.7%.

U.S. growth downgraded

Economists have downgraded their outlook for U.S. economic growth this year as Mr. Trump piles tariffs on a growing list of countries, warning that the levies are likely to boost inflation. That could reduce consumer spending, which accounts for more than two-thirds of the nation’s economic activity, as well as crimp business investment.

Import taxes are largely borne by businesses, which typically pass on part or much of those added costs to consumers. As a result, Americans could face higher prices for electronics, household appliances, cars, clothing, furniture, and food such as coffee and chocolate, according to economists.

“Looking ahead, higher tariffs will be working their way through our economy and are likely to raise inflation in coming quarters,” Powell said Friday.

According to the Tax Foundation, a nonpartisan policy research firm, the Trump administration’s tariffs could cost U.S. households more than $1,900 this year.

David Lefkowitz, head of U.S. equities at UBS Global Wealth Management, thinks U.S. trade officials will eventually lower tariff rates as they negotiate with their counterparts abroad. But that process is likely to take time, and the investment bank doesn’t expect a speedy reversal in U.S. tariffs. As a result, UBS economists have lowered their forecast for U.S. economic growth this year to less than 1%.

China strikes back

Investors are also nervously watching as the barrage of U.S. tariffs prompts retaliation from key trading partners. China on Friday said it will impose a 34% tariff on imports of all U.S. products starting April 10.

The Chinese Commerce Ministry also said it would implement tighter restrictions on exports of rare earths — materials used in products such as computer chips and electric vehicle batteries — as well impose trade sanctions on 27 additional U.S. companies.

“This is an aggressive, escalatory response that makes a near-term deal to end the trade war between the two superpowers highly unlikely,” analysts with Capital Economics said in a research note.

In more upbeat news for financial markets, U.S. employers added 228,000 jobs in March, far exceeding analyst forecasts. The nation’s unemployment rate rose slightly to 4.2%, versus 4.1% in February.

Yet while job growth was robust last month, experts say the government’s latest hiring numbers don’t reflect the impact of the Trump administration’s trade policies on the economy.

“For investors looking at their portfolios, it could have felt like an operation performed without anesthesia,” Brian Jacobsen, chief economist at Annex Wealth Management, said of this week’s downdraft in stocks.

George by — April 05, 2025 By George in Equities
Is Amazon.com, Inc. (AMZN) the Top Stock to Buy According to Think Investments?

We recently published a list of Top 10 Stocks to Buy According to Think Investments. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other top stocks to buy according to Think Investments.

Think Investments is an investment firm based in San Francisco, with additional offices in Singapore and India. The firm focuses on long-term investments in both public and private companies, emphasizing creative research to identify high-potential opportunities. Specializing in technology-driven early-stage businesses, Think Investments partners with its strong management teams to build differentiated companies that generate high returns on invested capital. With a deep understanding of emerging markets and global technology, the firm is well-positioned to navigate complex investment landscapes.

Founded in 2013 by Shashin Shah, Think Investments has established itself as a key player in global markets. The firm has over $1 billion invested in Indian companies operating in the financial services, healthcare, technology, and consumer sectors. Think’s investment strategy is guided by Shah’s extensive experience in global equity markets, ensuring a disciplined approach to capital allocation. The firm’s commitment to long-term value creation has made it a trusted partner for relatively young companies looking to scale efficiently.

Shashin Shah, Founder and Managing Partner, brings decades of expertise in global investing. Before launching Think Investments, he was a partner at Valiant Capital, where he managed multiple international markets, including India, the U.S., Europe, Asia, the Middle East, and North Africa. Shah also worked at Blue Ridge Capital and Morgan Stanley, further honing his investing skills. His academic background includes a bachelor’s degree in computer engineering from the University of Mumbai and an MBA from the University of Texas, equipping him with a strong analytical and financial foundation.

In addition to leading Think Investments, Shah plays an active role in shaping the growth of innovative companies. He currently serves on the boards of Chaayos, a tea café chain, and Dream11, India’s leading fantasy sports platform. His leadership and strategic insights continue to drive Think’s success, solidifying its reputation as a premier investment firm in global markets.

As of its latest filing for the fourth quarter of 2024, Think Investments reported managing approximately $454.51 million in 13F securities, of which the firm’s top ten holdings account for 80.57%.

Our Methodology

The stocks discussed below were picked from Think Investments’ Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points.

A customer entering an internet retail store, illustrating the convenience of online shopping.

Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders as of Q4: 339

Think Investments’ Equity Stake: $71.36 Million 

As of Q4 2024, Think Investments held 325,275 shares of Amazon.com, Inc. (NASDAQ:AMZN), valued at over $71 million. Hedge fund interest in the company also increased, with 339 out of 1,009 funds tracked by Insider Monkey holding positions worth nearly $69.02 billion by the end of the quarter, up from 286 funds in Q3.

Amazon.com, Inc. (NASDAQ:AMZN)’s fourth-quarter 2024 earnings report reflected solid financial performance, with earnings per share (EPS) of $1.86 surpassing analyst expectations by 25.3% and revenue reaching $187.8 billion—a 10% year-over-year increase. However, the company’s Q1 2025 sales forecast of between $151 billion and $155.5 billion fell short of Wall Street’s expectation of $158.5 billion, dampening investor sentiment. Compounding this concern was a $2.1 billion foreign exchange headwind and Amazon’s announcement of an aggressive $100 billion capital expenditure plan for 2025, primarily earmarked for Amazon Web Services (AWS) and artificial intelligence. This figure is a notable increase from the $83 billion spent in 2024, raising concerns amid intensifying competition from rivals like Microsoft and Alphabet.

Despite these headwinds, Amazon.com, Inc. (NASDAQ:AMZN) continues to strengthen its position through strategic investments in AI. The company is integrating artificial intelligence across its core business segments, including e-commerce, advertising, and especially AWS, which stands out as its most profitable division. AWS is witnessing significant demand from customers for AI-driven workloads, positioning it to benefit considerably from ongoing advancements in AI technologies. The expanded capex for 2025 is largely directed toward bolstering AWS infrastructure to meet the rising demand for such services.

Analysts remain optimistic about Amazon’s long-term prospects, particularly its leadership in the cloud and AI sectors. Brian White of Monness reaffirmed a “Buy” rating on Amazon stock with a price target of $265, citing the company’s robust strategic positioning and growth potential.

Overall, AMZN ranks 1st on our list of top stocks to buy according to Think Investments. While we acknowledge the potential of AMZN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

George by — April 05, 2025 By George in Equities
Stocks Just Had One of Their Worst Weeks of This Century—Here Are the Grim Details

Stocks tumbled on Friday, adding to the previous day’s massive losses and capping off one of the worst weeks on Wall Street since the turn of the century. Market participants started the week cautiously optimistic that the reciprocal tariffs that were slated to be announced Wednesday would give businesses and investors some much-needed clarity on U.S. trade policy. But investors were caught off guard by the sheer size and scope of the taxes, which are expected to lift the U.S. effective tariff rate to its highest level in more than a century. Economists warn tariffs of that magnitude could slash economic growth and reignite inflation. This week’s market sell-off was one of the most punishing in recent memory. Here are some data points that put this very bad week in context:
  • The S&P 500 fell 10.5% across Thursday and Friday, the index’s worst 2-day stretch since March 2020 and its third-worst since the turn of the century. The index’s 9.1% loss this week ranks as the seventh-worst week in the last 25 years.
  • The Dow had its sixth-worst week of the 21st century; it fell 7.9% over the week and 9.3% in the last two days.
  • The Dow shed 2,231 points on Friday, its third-largest one-day point decline on record.
  • The Nasdaq Composite has dropped 11.4% since Trump’s tariff announcement, also its worst 2-day stretch since March 2020.
  • Shares of Apple (AAPL), the world’s most valuable company, have lost 15.9% of their value since Wednesday’s close, their worst 2-day stretch since September 2008. The rout wiped more than half a trillion dollars off the iPhone maker’s market capitalization.
  • 31 companies in the S&P 500 lost more than 20% this week; 247 companies, or nearly half the index, fell 10% or more.
  • Just 21 stocks in the benchmark index—mostly healthcare companies and utilities—finished the week higher; on Friday, only 14 stocks rose.
  • Nike (NKE) rose 3% Friday, making it the only stock in the blue-chip Dow index to close in the green. Still, shares finished the week 10% lower.
  • Even companies with little to no direct tariff exposure were hammered. Palantir (PLTR), the software company that derives most of its revenue from the federal government, tumbled 14% this week. DoorDash (DASH) and Netflix (NFLX), despite not making or selling any physical products subject to tariffs, dropped about 11% and 8%, respectively.
George by — April 05, 2025 By George in Market Watch
US starts collecting Trump’s new 10% tariff, smashing global trade norms

WASHINGTON, April 5 (Reuters) – U.S. customs agents began collecting President Donald Trump’s unilateral 10% tariff on all imports from many countries on Saturday, with higher levies on goods from 57 larger trading partners due to start next week. The initial 10% “baseline” tariff took effect at U.S. seaports, airports and customs warehouses at 12:01 a.m. ET (0401 GMT), ushering in Trump’s full rejection of the post-World War Two system of mutually agreed tariff rates. “This is the single biggest trade action of our lifetime,” said Kelly Ann Shaw, a trade lawyer at Hogan Lovells and former White House trade adviser during Trump’s first term. Shaw told a Brookings Institution event on Thursday that she expected the tariffs to evolve over time as countries seek to negotiate lower rates. “But this is huge. This is a pretty seismic and significant shift in the way that we trade with every country on earth,” she added. Trump’s Wednesday tariff announcement shook global stock markets to their core, wiping out $5 trillion in stock market value for S&P 500 companies by Friday’s close, a record two-day decline. Prices for oil and commodities plunged, while investors fled to the safety of government bonds. Among the countries first hit with the 10% tariff are Australia, Britain, Colombia, Argentina, Egypt and Saudi Arabia. A U.S. Customs and Border Protection bulletin to shippers indicates no grace period for cargoes on the water at midnight on Saturday. But a U.S. Customs and Border Protection bulletin did provide a 51-day grace period, opens new tab for cargoes loaded onto vessels or planes and in transit to the U.S. before 12:01 a.m. ET Saturday. These cargoes need arrive to by 12:01 a.m. ET on May 27 to avoid the 10% duty. At the same hour on Wednesday, Trump’s higher “reciprocal” tariff rates of 11% to 50% are due to take effect. European Union imports will be hit with a 20% tariff, while Chinese goods will be hit with a 34% tariff, bringing Trump’s total new levies on China to 54%. Vietnam, which benefited from the shift of U.S. supply chains away from China after Trump’s first-term trade war with Beijing, will be hit with a 46% tariff and agreed on Friday to discuss a deal with Trump. Canada and Mexico were exempt from both Trump’s latest duties because they are still subject to a 25% tariff related to the U.S. fentanyl crisis for goods that do not comply with the U.S.-Mexico-Canada rules of origin. Trump is excluding goods subject to separate, 25% national security tariffs, including steel and aluminum, cars, trucks and auto parts. His administration also released a list, opens new tab of more than 1,000 product categories exempted from the tariffs. Valued at $645 billion in 2024 imports, these include crude oil, petroleum products and other energy imports, pharmaceuticals, uranium, titanium, lumber and semiconductors and copper. Except for energy, the Trump administration is investigating several of these sectors for further national security tariffs.
George by — April 05, 2025 By George in Market Watch
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