In partnership with
Good morning investors! Stocks fell on Tuesday, pressured by declines in artificial intelligence-related names like Palantir, as investors grew increasingly concerned about valuations in the bull market-leading shares.
Crypto also faced steep losses, with bitcoin plunging below $100,000 for the first time since June. The digital currency was down more than 7% as investors fled riskier assets like digital currencies.
Also, Goldman Sachs, Morgan Stanley warned of a market correction.
Today we cover:
Court vs Trump – the tariff battle starts today
Shopify reports
More earnings
Is the market correcting itself?
📊 Economy and News
Supreme Court to Hear Arguments on Trump’s Tariff Legality
The U.S. Supreme Court will hear oral arguments today on the legality of President Donald Trump’s broad tariffs, imposed under the 1977 International Emergency Economic Powers Act (IEEPA).
Lower courts ruled Trump exceeded his authority by citing a $1.2 trillion 2024 trade deficit and fentanyl deaths as national emergencies—the first use of IEEPA for widespread tariffs.
The court’s 6-3 conservative majority has backed Trump in prior cases, but the outcome remains uncertain. Treasury Secretary Scott Bessent expects a favorable ruling; if not, the administration could pivot to other authorities, including 15% tariffs for 150 days to address imbalances.
Analysts at Raymond James warn markets may react to the arguments, but judicial skepticism alone doesn’t signal tariffs will be struck down. Focus will be on questions from Justices John Roberts and Neil Gorsuch—if they express doubt, the odds of tariffs being invalidated rise.
A loss would strip Trump of a core negotiating tool used throughout his second term. However, Bessent said U.S. has ‘lots’ of options to use on tariffs if it loses Supreme Court case.
Global hits:
Australia’s central bank holds rates at 3.60%, signals caution.
China willing to negotiate free trade deal with EU, says Wang Yi.
Ireland risks major fiscal challenge from ageing population, finance ministry says.
Israel lowers 2025 economic growth forecast to 2.8%.
Check this: Trump says SNAP benefits on hold until government reopens. In other news, Norway’s mega wealth fund to reject Elon Musk’s $1 trillion Tesla pay package
Sponsored by Roku
Find your customers on Roku this Black Friday
As with any digital ad campaign, the important thing is to reach streaming audiences who will convert. To that end, Roku’s self-service Ads Manager stands ready with powerful segmentation and targeting options. After all, you know your customers, and we know our streaming audience.
Worried it’s too late to spin up new Black Friday creative? With Roku Ads Manager, you can easily import and augment existing creative assets from your social channels. We also have AI-assisted upscaling, so every ad is primed for CTV.
Once you’ve done this, then you can easily set up A/B tests to flight different creative variants and Black Friday offers. If you’re a Shopify brand, you can even run shoppable ads directly on-screen so viewers can purchase with just a click of their Roku remote.
Bonus: we’re gifting you $5K in ad credits when you spend your first $5K on Roku Ads Manager. Just sign up and use code GET5K. Terms apply.
📈 Stocks
S&P 500 6,771.55 (+%)(-1.17%)
DJIA 47,085.24 (+%)(-0.53%)
NASDAQ 23,348.64 (+%)(-2.04%)
BRENT CRUDE 64.44 (-0.42%)
* Prices as of Mar 3rd, 12:20 AM UTC
Shopify, Pinterest, and more report
Shopify fell after the e-commerce platform provider reported third-quarter earnings and operating income that missed estimates while revenue beat. The company's December quarter sales outlook met expectations amid its expansion into enterprise and international markets.
Rivian Automotive beat Wall Street’s expectations for the third quarter. The electric vehicle maker also reported its second quarterly gross profit this year. Rivian’s gross profit included a $130 million loss in its automotive operations that was offset by $154 million from its VW joint venture and software and services.
AMD results exceeded consensus, but guidance for adjusted gross margin in the current quarter was inline with expectations. In October, the chipmaker announced a deal with OpenAI, which for years relied on Nvidia processors for running artificial intelligence models. Also on Tuesday, Amazon said it sold all of its shares in AMD.
Cava cut its full-year forecast for same-store sales growth as younger diners visit its restaurants less frequently. The Mediterranean chain reported same-store sales growth of 1.9% and flat traffic for the third quarter. Fast-casual rival Chipotle Mexican Grill reported similar behavior from the same age cohort when it released its quarterly earnings.
Pinterest reported third-quarter financial results that missed expectations for earnings per share but beat on global monthly active users. The company said fourth-quarter revenue will come in between $1.31 billion and $1.34 billion. The midpoint of the revenue outlook, $1.325 billion, trailed Wall Street’s projections of $1.34 billion. The stock fell -20% as a result.
Super Micro Computer reported weaker-than-expected results for the fiscal first quarter. The stock plummeted in extended trading even though the company issued preliminary results last month to prepare investors for what was coming. The company’s revenue guidance for the second quarter topped estimates as some business back a period.
Check here: IBM cutting thousands of jobs in the fourth quarter. Elsewhere, Papa John’s sank 10% following a report that Apollo Global has withdrawn its offer to take the chain private. Lastly, OpenAI launches Sora for Android devices.
Controversial: Perplexity AI accuses Amazon of bullying with legal threat over Comet browser.
UPS plane crashes after taking off from Louisville airport.
Trump renominates Musk ally Jared Isaacman to run NASA months after withdrawal.
💵 Personal Finance
Year-end cleanup you can finish today
Market days like this are a reminder to control what you can. Use today to tighten your year-end plan so market volatility does not decide for you.
Start by scanning unrealized losses in your taxable account and consider tax-loss harvesting to offset realized gains.
Mind the wash-sale rule by swapping into similar, not identical, exposures so your asset mix stays on target. If you have a flexible spending account, check your balance and eligible expenses now.
Many plans still operate on a use-it-or-lose-it basis, and simple moves like refilling prescriptions or booking routine care can keep money from expiring unused. Finally, open enrollment is in full swing at many workplaces. A 20-minute pass through health, HSA, and disability options can lock in hundreds of dollars of savings for next year.
Two quick checks often pay off. First, confirm your HSA eligibility if you choose a high-deductible health plan. HSAs pair triple tax advantages with portability, and investing the balance can compound for years.
Second, raise your 401(k) deferral if you got a raise or bonus. Even a one-point bump can materially lift your long-run balance without denting next month’s cash flow. If your plan offers a brokerage window, use it judiciously; broad, low-cost index exposure still does most of the heavy lifting for long-term goals.
💰 Be a Better Investor
“Risk comes from not knowing what you are doing.”
Think you know stocks?
Pro puts your instincts to the test with our Bull vs Bear AI stock advisor. Plus: exclusive deep dives, smarter tools, and zero fluff.
What did you think of today's newsletter?
👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.