💡 Getting liberated

and stocks appear confused

Good morning investors! Today is a big day as we may have some clarity on tariffs.

Today we cover:

  • Liberation Day

  • Messed up economy

  • Stocks go up again

📊 Economy and News 

Liberation Day is Here

Today, April 2, 2025, is “Liberation Day,” with President Trump’s reciprocal tariff announcement set for Rose Garden press conference. Though we don’t yet know what’s coming, rumors say that White House aides have drafted a proposal that would levy tariffs of roughly 20% on most imports.

Unlike the tariffs already announced by the Trump administration, the new plan is expected to be more widespread and permanent as opposed to targeting specific countries or industries.

Aimed at reviving U.S. manufacturing, the tariffs—matching foreign duties on U.S. goods—follow $3 trillion in pledged investments but spark fears of a global trade war.

Wall Street is rattled, with the S&P 500 down 4.6% year-to-date and NASDAQ off 13.6% from February highs.

Interestingly, investors in financial derivatives called U.S. inflation swaps are betting that President Donald Trump’s tariffs will have a hefty short-term impact on consumer prices that will recede in the next few years as recession concerns escalate.

Earlier tariffs on Canada, Mexico, China, and the EU, plus steel, aluminum, and auto duties, have already dented confidence and hiked inflation fears.

Israel’s tariff rollback offers hope, but economists predict chaos, with a potential $1.4 trillion global hit. Effective immediately, the tariffs may fall short of revenue goals, leaving the world bracing for an uncertain economic shakeup.

In addition to Israel dropped their tariffs, Vietnam has done the same.

Treasury Sec. Bessent and Commerce Sec. Lutnick have both stated the goal is to reduce spending, bring in money from tariffs, so they can cut taxes.

Poll result: We asked our subscribers what they think of tariffs, and the opinion is divided with 48% calling tariffs bad and 52% supporting the decision.

Global hits:

Everyone’s buying cars: March car sales surged as buyers rushed to beat impending tariffs. Ford reported a 10% sales jump, recovering from a 1.3% first-quarter decline, with retail sales soaring 19%. The spike coincides with the Trump administration’s plan to impose a 25% tariff on imported cars and potentially auto parts, driving prices higher.

Online traffic on Cox Automotive's platforms spiked 30% after the tariff announcement. Ford’s Maverick pickup, built in Mexico, hit record sales, while its Mustang Mach-E saw a 21% increase. Industrywide, US new car sales rose 5% in March.

Other automakers also saw gains—Toyota sales rose 8%, Honda 13%, Hyundai set a US record, and GM’s quarterly sales climbed 17%. EV sales were strong across the board amid uncertainty over the $7,500 federal tax credit, which the Trump administration plans to eliminate. More automakers are set to report quarterly sales later Tuesday.

Falling job market: Intuit’s Small Business Index showed small firms shed 98,000 jobs in March, a 0.82% decline, while broader labor data indicates slowing hiring, rising layoffs, and declining job openings. The total number of job openings was essentially flat at 7.6 million, with the number of job openings to available workers hovering just above 1. Quits, layoffs, and other separations were little changed, showcasing the economy’s slow-melting labor market conditions.

How do you expect the market to react to tariffs today?

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📈 Stocks

S&P 500 5.633,07 (+0.38%)
DJIA 41.989,96 (-0.028%)
NASDAQ 17.449,89 (+0.87%) 
BRENT CRUDE 74.41 (-0.11%)
* Prices as of Apr 2nd, 12:20 AM UTC

S&P 500 Rises Amid Volatility as Markets Await Tariff Policy Update

The S&P 500 edged higher on Tuesday in another turbulent trading session as investors awaited further details on President Donald Trump’s tariff policy. Market sentiment remained cautious, with Wall Street also grappling with weaker-than-expected economic data.

The index saw sharp fluctuations throughout the day, mirroring Monday’s trading pattern. At its peak, the S&P 500 gained 0.7%, but it briefly fell nearly 1% at its session low before recovering.

Among the standout sectors, consumer discretionary stocks led the gains. Tesla shares rose 3.6% despite sales tumbling, while Nike climbed 2%.

Worth checking: Japanese carmakers are in dire straits, with Toyota likely to be the worst hit due to their huge U.S. exposure. U.S. judge rejects Johnson & Johnson’s $10 billion baby powder settlement.

Exciting: Cliff Asness’s AQR multi-strategy hedge fund returns 9% in the first quarter during tough conditions. You can also get similar results by working with a financial advisor (sponsored).

Also, Interactive Brokers Group, Inc. surged over 4% on Tuesday following the release of robust trading data for March 2025. The company reported a 44% year-over-year increase in daily average revenue trades, reaching 3.471 million. However, trading activity saw a slight decline of 4% compared to February.

Surprising: Newsmax’s rally continued as shares soared 183% to $233, pushing its market cap past $32 billion—larger than 235 S&P 500 companies. However, its trailing 12-month sales remain just $156 million, 78% below the lowest-revenue firm in the index.

💵 Personal Finance

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💰 Be a Better Investor

"Wealth is not his that has it, but his that enjoys it."

Benjamin Franklin

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👩🏽‍⚖️ Legal Stuff
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