😿 Losing trillions

Good morning investors! The market fell today and there may be more blood. Get ready for earnings too as banks start making announcements today.

Today we cover:

• New inflation report surprises

• Stocks fall again

• What’s getting expensive

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📊 Economy and News 

Inflation Slows in March as Tariffs Loom

U.S. consumer price inflation eased more than expected in March, just as President Trump prepared new tariffs. The Consumer Price Index (CPI) dipped 0.1% for the month, bringing the annual inflation rate down to 2.4% from 2.8% in February. Core inflation, excluding food and energy, rose just 0.1% month-over-month and held at a 2.8% annual pace—its lowest since March 2021.

Wall Street had expected higher figures: 2.6% headline and 3% core inflation.

What Went Down

• Gasoline: -6.3%

• Energy Index: -2.4%

• Used Vehicles: -0.7%

• Airline Fares: -5.3%

• Vehicle Insurance: -0.8%

• Prescription Drugs: -2%

What Went Up

• Food Prices: +0.4%

• Eggs: +5.9% in March, +60.4% YoY

• Shelter: +0.2% in March, +4% YoY

• New Vehicles: +0.1%

Though President Trump delayed some aggressive tariffs, economists still expect trade policy to push inflation higher later this year. The Fed is likely to hold off on rate cuts until at least June.

Global hits:

• Brazil’s services activity growth beats expectations in February.

• Europe stocks close 3.7% higher for best session in three years as U.S. sell-off resumes. Also, the Euro climbed the most yesterday as it has for years.

• U.S. dollar index suffers biggest drop since 2022, hits new low for the year.

• Tesla launches in Saudi Arabia amid Chinese competition and tumbling sales.

Controversial: President Donald Trump was aware the economy could enter a recession, but wanted to avoid a depression, from his tariffs, according to a Wall Street Journal report. Also, Trump declined to rule out extending the 90-day tariff pause and said he hadn’t yet seen Tuesday’s market sell-off.

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📈 Stocks

S&P 500 5,268.05 (-3.46%)
DJIA 39,593.66 (-2.50%)
NASDAQ 16,387.31 (-4.31%)
BRENT CRUDE 63.33 (-3.28%)
* Prices as of Mar 3rd, 12:20 AM UTC

A chunk of Wednesday’s historic rally wiped out

Stocks dropped Thursday, pulling back from a historic rally the day before, after President Trump announced a 90-day pause on some tariffs. Despite the reprieve, investor anxiety remained high due to a steep increase in duties targeting China.

Apple and Tesla declined more than 4% and 8%, respectively, while Nvidia and Meta lost about 7%.

Losses deepened after the White House confirmed the cumulative tariff rate on Chinese goods would rise to 145%—a 125% new duty on top of a prior 20% tied to the fentanyl crisis. Other tariffs in effect include 25% on aluminum and autos from non-USMCA partners, and 10% on most other imports.

Trump later said the tariff pause could be extended, but offered no guarantees.

"Investors have sobered up," said SimCorp's Melissa Brown, noting that the shifting tariff landscape makes it hard to find market direction. Morgan Stanley added that while delays help, uncertainty still dominates.

Another fall: RFK spoke about vaccines and autism, affecting relevant stocks, particularly Charles River that fell 26%.

Also, US Steel's stock declined after the Trump Administration signaled opposition to the proposed $14 billion sale to Nippon Steel. Despite earlier investor optimism this week, the stock continued to slide.

💵 Personal Finance

Grocery Prices Are Set to Rise: What's Getting Expensive and When

Tariffs announced by President Trump are driving up the cost of groceries, with price hikes expected to begin within weeks and spread across stores over the next 90 days. Supermarkets rely heavily on imported goods—everything from seafood and coffee to fruit, cheese, nuts, and candy bars. With a 10% tariff now placed on all imported goods from most countries, U.S. businesses are passing those higher costs onto consumers.

Perishable items like produce and seafood will become more expensive first, followed by shelf-stable goods. Prices will also rise on items that use foreign-made packaging like aluminum and plastic. Smaller grocers and distributors are raising prices faster than large chains because they have less inventory and flexibility to absorb the added costs.

Some suppliers have already increased prices. For example, an Italian importer is raising olive oil and vinegar prices by 20%, while bananas from Guatemala will cost 4 cents more per case next week.

Imported foods are particularly vulnerable: about 80% of seafood and coffee, and over half of fresh fruit consumed in the U.S., come from abroad. Items not grown domestically—like bananas—will see the sharpest increases.

Although Mexico and Canada are exempt from the latest tariffs due to the USMCA agreement, food inflation is already a concern. Grocery prices have jumped 23% since 2021. Shoppers are reacting by cutting back, buying fewer snacks, and switching to cheaper private-label products as they feel the ongoing pinch from inflation and rising borrowing costs.

Even Amazon shoppers can likely expect some prices to rise due to the ongoing global trade war, the company’s CEO admitted.

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

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