😞 Chip stocks fall

and retail sales surge

Good morning investors! The market fell yesterday due to some bad news and mixed reports.

Today we cover:

  • Retail sales surge

  • Fed had a lot to say

  • Chip stocks fall

"This new piece of legislation is now poised to secure ""the most important industry in the world""-- here on American soil.

The reason is simple: It's targeting a critical piece of technology that many insiders are calling, ""the new oil."""

📊 Economy and News 

Retail Sales Surge in March Despite Economic Worries

Consumer spending unexpectedly rose in March, with retail sales rising 1.4%—outpacing the 1.2% forecast and marking the biggest monthly gain since January 2023. Year-over-year sales climbed 4.6%, showing strong demand despite declining consumer sentiment.

Excluding autos, sales rose 0.5%, above the 0.3% estimate. Motor vehicle and parts dealers led with a 5.3% jump, as consumers rushed to buy ahead of expected tariffs.

Other notable gains included building materials (up 3.3%), sporting goods (2.4%), and food services (1.8%). Gasoline sales fell 2.5% due to lower prices.

The data suggests resilient spending even as inflation fears and recession concerns persist. Markets showed little immediate reaction, with stock futures slightly down and bond yields rising.

Global hits:

Good to know: Nissan aims to ‘max out’ U.S. production plant amid Trump’s tariffs. Also, U.S. vehicle supply is falling amid tariff fear-buying. Lastly, cancellations of Chinese freight ships begin as bookings plummet.

Shocking: Global trade outlook has ‘deteriorated sharply’ amid Trump tariff uncertainty, WTO warns. Elsewhere, CBP says latest tariffs have generated $500 million, well below Trump’s estimate. Lastly, The European Union braces for more U.S. tariffs despite talks.

Important to cover: Federal Reserve Chairman Jerome Powell has acknowledged the growing mainstream acceptance of cryptocurrencies and hinted at the possibility of easing banking regulations related to crypto and stablecoins.

He emphasized the urgent need for a clear legal framework to govern stablecoins. At the same time, Powell voiced serious concerns about the U.S. running crisis-level deficits even amid full employment, calling the current federal debt trajectory unsustainable.

He also warned that rising tariffs could complicate the Fed’s dual mandate of managing inflation and supporting economic growth.

The market dropped after Powell's remarks showed no hint of imminent rate changes, emphasizing a continued strategy of slowing down and waiting. Furthermore, he said Fed had no plans to intervene as the market was doing ‘fine’.

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📈 Stocks

S&P 500 5,275.70 (-2.24%)
DJIA 39,669.39 (-1.73%)
NASDAQ 16,307.16  (-3.07%)
BRENT CRUDE 65.85 (+1.82%)
* Prices as of Mar 3rd, 12:20 AM UTC

Bad day for chip stocks

Technology stocks declined as the chipmaking sector warned of ongoing uncertainty and higher costs from President Donald Trump’s tariff plans.

Dutch semiconductor equipment firm ASML reported net bookings of 3.94 billion euros ($4.47 billion) for the first quarter, versus analysts’ forecast of 4.89 billion euros.

Christophe Fouquet, ASML’s CEO, said tariffs are “creating a new uncertainty” for both the economy and “our potential market demands.”

Also, both Nvidia and AMD are expected to face financial issues.

Nvidia revealed that it will take a $5.5 billion charge tied to exporting its H20 graphics processing units to China.

On the other hand, AMD announced that new U.S. export restrictions will affect sales of its MI308 AI chip, particularly to certain markets like China. The company reported potential inventory-related charges of up to $800 million due to these export controls, which could impact its financial performance.

All three stocks were down around 7%.

Another major victim was Facebook that lost nearly 4%. Reports show that Mark Zuckerberg suggested wiping everyone’s Facebook friends and making users start again to boost the platform’s relevance in 2018. Also, speaking at the trial, he said that Meta saw TikTok as ‘highly urgent’ threat.

What do you consider Facebook's biggest competitor?

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Exciting: Lyft to buy taxi app Free Now for $200 million to expand into Europe. Elsehwere, Hertz shares surge more than 50% after Bill Ackman takes big stake in the rental car firm. Per MarketBeat, about 40% of HTZ's tradable shares were shorted. Bloomberg's Romaine Bostick suggested the stock's surge might indicate shorts covering their positions.

Lastly, OpenAI in talks to pay about $3 billion to acquire AI coding startup Windsurf as the platform now can ‘think with images,’ understanding diagrams and sketches.

Controversial: Google faces £5 billion lawsuit in the UK for abusing ‘near-total dominance’ in search. On the other hand, Temu and Shein slash U.S. ad spending, plummets in App Store rankings after Trump China tariffs. Lastly, Tesla's California car registrations fell 15% in Q1 compared to last year, marking the sixth straight quarter of decline, a trend confirmed by the California New Car Dealers Association..

💵 Personal Finance

4 Smart Moves to Avoid Painful Losses in a Volatile Market

Investor Tim Seymour of “Fast Money” is offering four key tips to help you steer clear of common pitfalls that can magnify losses during turbulent markets.

1. Only Invest What You Can Emotionally and Financially Handle
Avoid overexposure. If market swings keep you up at night or trigger forced margin calls, it’s a sign you’re too deep. Emotional strain often leads to poor decisions.

2. Don’t Cling to Losing Positions Out of Hope
Staying in a trade just to break even is risky. Make investment decisions based on the fundamentals—not on wishful thinking.

3. Reevaluate Your Investment Thesis Regularly
Yesterday’s reasons for buying a stock might not hold up today. If the underlying fundamentals have changed, don’t hesitate to adjust your strategy.

4. Let Your Winners Run—Not Your Losers
It’s tempting to sell strong performers and hold onto weak ones. But in downturns, high-quality companies tend to fare better. Trim the losers, not the leaders.

In short, stay disciplined, stay rational, and don’t let hope or habit drive your portfolio choices.

💰 Be a Better Investor

“Don’t have more money in the market than you can stomach.”

Tim Seymour

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.