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- đ¤ Stocks fight back
đ¤ Stocks fight back
and Goldman Sachs predicts
Good morning investors! Yesterday was a crazy ride and we may expect some more similar days this week.
Today we cover:
Goldman predicts future
Stocks fight back
Huawei shines
What do you think of tariffs? |
đ Economy and News
What Goldman Had to Say
Goldman Sachs raised the likelihood of a U.S. recession to 35% from 20%, citing the impact of President Donald Trumpâs tariffs on the global economy. The brokerage also cut its 2025 U.S. GDP growth forecast to 1.5% from 2.0% and now expects three Fed rate cuts instead of two.
Trump announced upcoming reciprocal tariffs on major trading partners, further shaking markets. Goldman also slashed its S&P 500 year-end target to 5,700 from 6,200, the lowest among Wall Street firms. It predicts the average U.S. tariff rate will rise 15 percentage points in 2025, exceeding prior estimates.
The brokerage anticipates Fed rate cuts in July, September, and November, revising its earlier forecast of June and December cuts. Meanwhile, Europe is expected to fare worse, with near-zero growth for most of 2025 and a likely technical recession. Goldman expects Trump's tariffs on the EU to raise effective rates by 20 percentage points.
Separately, CNBC thinks that first-quarter GDP growth will be just 0.3% as tariffs stoke stagflation conditions
Global hits:
German inflation falls to 2.3% in March, backing bets for ECB rate cut.
Inflation in Poland at 4.1% in 2025, central bank survey shows.
Australia home prices hit new record in March after rate cut.
Exciting: Gold soars to record above $3,100/oz, eyes best quarter since 1986. Elsewhere, Aston Martin shares popped 13% as Canadian billionaire Lawrence Stroll invests more cash. Lastly, AMC, the worldâs largest cinema chain, is adding 40 Dolby Cinema theaters to its U.S.-based AMC locations through the end of 2027.
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đ Stocks
S&P 500 5 611,85 (+0.55%)
DJIA 42 001,76 (+1.00%)
NASDAQ 17 299,29 (-0.14%)
BRENT CRUDE 74.74 (+1.51%)
* Prices as of Apr 1st, 12:20 AM UTC
Stocks are fighting
The S&P 500 recovered from earlier losses on Monday, closing the session in positive territory as traders anxiously awaited clarity on President Donald Trumpâs tariff policies.
Technology stocks continued to face headwinds, with Nvidia declining 1.2% and Tesla falling 1.7%. Despite last yearâs surge driven by artificial intelligence optimism, tech stocks have struggled to regain momentum. Nvidia, once a standout in the AI boom, is now nearly 30% below its 52-week high. Seeking stability, investors shifted toward defensive names, lifting Dow components like Coca-Cola and Walmart.
The S&P 500 remains nearly 9% below its record high from February, having touched its lowest level since September. The Nasdaq, heavily weighted toward tech, also reached levels last seen in September and sits 14% below its December peak.
The benchmark S&P 500 index is down 4.6% for the year, its worst start since 2022 and its worst quarter since September 2022. The Nasdaq posted a 10.4% drop, its steepest quarterly loss since a 22.4% plunge in Q2 2022. Meanwhile, the Dow slipped 1.3% over the first three months of 2025.
On the other hand, shares of vaccine makers Moderna and Novavax, along with a range of other biotech companies, fell after the resignation of key FDA official Peter Marks.
Huawei shines: Huawei reported a 22.4% rise in 2024 revenue to 862.1 billion yuan ($118.2 billion), its second-highest ever. However, net profit fell 28% to 62.6 billion yuan due to increased investments, including 179.7 billion yuan in R&D.
Despite U.S. sanctions restricting access to key semiconductors, Huawei expanded into AI, cloud computing, and automotive tech. The launch of 5.5G networks also boosted sales.
Its consumer business soared 38.3% to 339 billion yuan, driven by a smartphone comeback. A semiconductor breakthrough in China helped Huawei increase domestic smartphone shipments by 37%, gaining market share at Apple's expense. The company also launched HarmonyOS 5, fully independent from Google's Android.
New players: Conservative cable channel Newsmax spikes more than 500% in first trading day on NYSE. On the other hand, CoreWeave shares slump nearly 10% in second day of trading. Lastly, OpenAI funding round could be cut by $10 billion if for-profit conversion doesnât occur by year-end.
Good to know: Chef Robotics raises $20.6 million to continue building AI robot arms. Elsewhere, Taiwan-based United Microelectronics popped more than 10% on news that it is looking to potentially merge with GlobalFoundries.
đľ Personal Finance
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đ° Be a Better Investor
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