Tariffs Rattle Global Markets

HOT OFF THE PRESS🔥
💰Tariffs Rattle Global Markets

Welcome to Money Masters!

Markets were shaken this week as President Trump’s sweeping reciprocal tariffs triggered sharp declines across equities, bonds, and crypto. The S&P 500 fell below 5,000 for the first time in nearly a year, while speculation of China offloading U.S. Treasuries added fuel to investor fears. In times like these, staying focused on long-term strategy is key.

Let’s go.

BIG IDEA 1💡
Tariff Turbulence and Market Reactions

Markets Slide as Tariffs Hit Hard

• S&P Sinks Below 5,000: After surging over 4% during the session, the S&P reversed sharply to close at 4,987, its lowest since April 2024.

• NASDAQ Drops 2.2%: Tech stocks struggled amid geopolitical uncertainty, dragging the Nasdaq into deeper red territory.

• Dow Slides 320 Points: Renewed trade war fears triggered broader-based selling across equities.

Trump’s Tariff Bombshell

• Tariffs Hit 104%: Trump signed a midnight order raising reciprocal tariffs on China to 104%, adding pressure to supply chains and consumer costs.

• Global Scope: Over 180 countries are impacted, including EU, Japan, Vietnam, and Taiwan—each facing their own new tariff rates.

• China Standoff: Despite the escalation, China remains absent from negotiation talks and vows to "fight to the end."

Bond Market in Turmoil

• China Dumping Treasuries: Rumors swirl as 10-year yields jump to 4.29% and 30-year climbs to 4.76%, fueling fears of a bond sell-off.

• Liquidity Risk Rising: Venture investor Chamath Palihapitiya suggests China may be manipulating auctions to raise U.S. borrowing costs.

• Fed Watch Begins: UBS says a 5–10% further drop in equities could force the Fed’s hand on easing.

BIG IDEA 2💡
Shifting Sectors & Strategic Sentiment

Healthcare Climbs, Tech Falls, and Crypto Rebounds

• Medicare Boost: Trump’s higher-than-expected 5.06% hike to Medicare Advantage plans gave a lift to insurers like UnitedHealth and CVS.

• Marvell Falls: A $2.5B asset sale couldn’t prevent a more than 3% slide, highlighting how sector strength is shifting.

• Bitcoin Rebounds: After briefly hitting five-month lows, Bitcoin rose 2.4% to reclaim the $80K level, tracking a broader market bounce.

• Death Cross Warning: Despite gains, Bitcoin formed a “death cross” on the charts, signaling potential near-term weakness amid tariff-driven volatility.

Some investors are looking beyond Bitcoin, exploring alternative digital assets with unique upside potential.

Musk vs. Navarro: Tariff Showdown

• Feud Goes Public: Elon Musk criticized Trump advisor Peter Navarro, calling him “a moron” over tariff policy.

• Tesla’s Wild Week: While up 4.7% Tuesday, the stock remains down 42% YTD and 14% since Trump’s “liberation day” speech.

• No Deal for Tesla: Despite personal appeals, Musk failed to shift Trump’s stance on auto and EV tariffs.

Wall Street’s Caution Grows

• Recession Risk Rising: Analysts now warn tariffs could create a stagflation scenario of low growth, high inflation, and limited policy flexibility.

• No Congressional Backstop: Despite bills circulating, Trump’s executive orders likely remain in place with veto-proof support lacking.

• Emerging Market Parallels: Euronext CEO says the U.S. economy now resembles an emerging market more than a developed one.

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

NEWSLETTER CORNER🗞️
Subscribe To Our Friends!

1. The Fundraising Demystified Newsletter

2. The SaaS CFO

3. How Brands Win

4. The Rundown AI

5. Swipe Files 📂

FINANCIAL LITERACY CORNER📚
Learn About Money (Literally)

1. On the Money: Tips for new investors

2. 15 money saving tips for spring 2025

3. Bracing for Trump's tariffs? Here are 3 money tips from a personal finance columnist

4. Money-saving freezer tips from keeping it full to correctly storing food

5. Financial expert shares tips on managing your money amid tariff uncertainty

HEADLINE ROUNDUP🤠
Our 5 Favorite Stories

1. US stocks dive after another stunning reversal as uncertainty reigns about Trump’s tariffs

2. Stocks haven't fallen this much since 2020. Their recovery could look different this time.

3. Warren Buffett defended his massive $300 billion cash pile in February. Now he doesn't have to.

4. Apple’s 4-day slide puts Microsoft back on top as most valuable company

5. China Drives Record Gold ETF Inflows as Trade War Deepens

INFLATION REPORT💸
Today’s Inflation Rate: 2.31% (fell sharply 😃)