Markets Sink as Tariffs Rise

Author

Kenny
March 05, 2025

Billionaires wanted it, but 66,737 everyday investors got it first… and profited

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One platform is taking on the billionaires at their own game, buying up and offering shares of some of history’s most prized blue-chip artworks for its investors. In just the last few years, those investors realized representative annualized net returns like +17.6%, +17.8% and +21.5% (among assets held 1+ year).

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It's easy to get started, but offerings can sell out in minutes.

Past performance not indicative of future returns. Investing Involves Risk. See Important Disclosures at masterworks.com/cd.

HOT OFF THE PRESS🔥
💰Markets Sink as Tariffs Rise

Welcome to Money Masters!

The stock market took a hit this week as rising tariffs reignited trade tensions and rattled investor confidence. With the U.S. imposing new trade barriers on key global partners, swift retaliation from Canada, Mexico, and China added further pressure to an already fragile economic landscape. As uncertainty mounts, tech stocks struggled to hold gains, crypto markets remained volatile, and analysts warned of potential earnings risks ahead.

Let’s go.

BIG IDEA 1💡
Market Volatility and Tariffs

Tech’s Momentum Fizzles, Markets Slide

  • Stock Market Reaction – The S&P 500 dropped 1.2%, the Dow fell 1.6%, and the Nasdaq slipped 0.4% as investors grew cautious.

  • Nvidia’s Gains Fade – Nvidia (NASDAQ: NVDA) closed 1.7% higher after an early rally but failed to maintain momentum.

  • Citi’s Long-Term Outlook – Citi reaffirmed its confidence in Nvidia’s fundamentals despite a 13% post-earnings decline.

  • Alphabet Offers Some Relief – Alphabet (NASDAQ: GOOGL) gained 2%, preventing a deeper market sell-off as investors sought stability in mega-cap tech.

U.S. Tariffs Trigger Global Retaliation

  • New Trade Barriers – The U.S. imposed 25% tariffs on Canadian and Mexican imports, along with a 10% duty on Chinese goods.

  • Canada Hits Back – Canada announced its own 25% tariffs on $20 billion worth of U.S. products, including beer and home appliances.

  • China’s Response – Beijing imposed new tariffs of 10%-15% on key U.S. agricultural goods, escalating trade tensions.

Mexico and Canada Consider Countermeasures

  • Mexico Plans Retaliation – President Claudia Sheinbaum criticized the tariffs and hinted at countermeasures to be announced this weekend.

  • Possible Trade Deal? – Commerce Secretary Howard Lutnick suggested that negotiations with Mexico and Canada are ongoing.

  • USMCA Trade Pact in Question – The North American trade agreement faces uncertainty as leaders navigate new tariff disputes.

BIG IDEA 2💡
Crypto Volatility and Institutional Moves

Crypto Markets React to Trade Uncertainty

  • Bitcoin Rebounds – After dipping below $82K, Bitcoin (BTC) recovered to $87,819 as dip buyers stepped in.

  • Trump’s Crypto Reserve Plan – Trump’s announcement of a national crypto reserve briefly lifted sentiment but lacked key details.

  • Regulatory Clarity Needed – The upcoming White House Crypto Summit may provide insights into future policies.

Explore Margentum, the digital silver to Bitcoin’s digital gold—by the Money Masters Team!

Retail Sector Faces Mixed Earnings Results

  • Target Issues Weak Guidance – Target (NYSE: TGT) fell 3% after warning of slower sales growth amid economic and trade uncertainty.

  • Best Buy’s Profit Squeeze – Despite strong holiday sales, Best Buy (NYSE: BBY) dropped 13% as discounts cut into profit margins.

  • Nordstrom Outperforms Expectations – Nordstrom (NYSE: JWN) rose 0.3% after surpassing quarterly sales estimates, though leadership changes added some uncertainty.

Investor Sentiment Weakens Amid Policy Uncertainty

  • Earnings Forecasts at Risk – Citi warned that S&P 500 earnings estimates might not fully reflect the impact of rising tariffs.

  • Bearish Market Positioning – The Nasdaq and S&P 500 saw increased short positioning as economic concerns deepened.

  • Uncertainty Dominates – Analysts remain hesitant to make significant market calls until more clarity emerges on trade policies.

Need our expert tips? Grab our Money Mastery guides today.

INFLATION REPORT💸
Today’s Inflation Rate: 2.59% (slightly elevated)

You are now closer to money mastery!🎉
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The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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