🪔 What to expect this week

and stocks having a crazy time

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Good morning investors! Last week was brutal and this week all eyes will be on tariffs.

 Today we cover:

  • What to expect this week

  • Stocks take a beating

  • The potential impact of tariffs

Reminder: With US stocks falling, the focus has shifted to international markets, including the Chinese market that has made major gains in 2025. Keeping this in mind, we covered Chinese stocks in this week’s PRO issue, including some top picks and a detailed look at Alibaba.

Upgrade now to get access to this, upcoming, and previous PRO issues with some other great perks.

📊 Economy and News 

Markets Brace for a Pivotal Week: Tariffs, Jobs, and Central Bank Moves

Global markets face a critical week as investors remain on edge, navigating uncertainty across major economies.

Trade Tensions Escalate

Trump’s April 2 deadline for unveiling sweeping trade policies, including a 25% tariff on imported vehicles, looms large. Despite signals of a more targeted approach, markets remain volatile as uncertainty clouds investment decisions and currency stability.

"The market is going to have a lot to digest," Veda Partners director of economic policy Henrietta Treyz told Yahoo Finance. "And they're going to see just how forward-looking and long-term these tariffs are, which is not currently priced in."

Should the eventual tariff rate land higher than Barclays' roughly 15% estimate, the firm sees more potential downside risk for stocks and the economy potentially slipping into recession.

U.S. Jobs Report: A Crucial Test

The April 4 non-farm payrolls report is expected to show employment growth slowing to 128,000 in March from 151,000 in February. Investors will assess whether economic momentum is fading and if recent federal workforce reductions influence job trends. Rate-cut expectations remain intact, with markets pricing in two Federal Reserve cuts by year-end.

Eurozone: Inflation and ECB’s Next Move

Eurozone inflation data on April 2 will test expectations for another European Central Bank rate cut. Markets see an 80% chance of a cut on April 17, though policymakers remain divided. Meanwhile, new U.S. auto tariffs further complicate Europe’s economic outlook, raising questions about long-term policy direction.

Australian Rates: A Pause Before Action

The Reserve Bank of Australia is likely to hold rates steady on April 2, following its February cut. Soft inflation and a cooling labor market have heightened expectations of a May rate cut, with odds at 70%. Investors will closely watch upcoming consumer price data for further clues.

Global hits:

Fighting tariffs: Wells Fargo economists expect the newly implemented tariffs to push U.S. consumer prices higher but note several factors that could soften the impact. With tariffs set to rise from 2% in 2024 to 8% in 2025 on over $1 trillion in imports, foreign firms may lower prices to offset costs, particularly as a stronger dollar and excess manufacturing capacity in key trading partners provide some cushion. While high profit margins in goods-related industries could help absorb costs, many firms, accustomed to pandemic-era price hikes, may still pass them on to consumers. Importers are also pulling forward orders to delay cost increases, temporarily easing inflationary pressure. Despite these mitigating effects, Wells Fargo projects a 0.6 percentage point rise in consumer price inflation, with the impact unfolding gradually over the next two years, keeping core PCE inflation near 2.8% in 2024 and above the Federal Reserve’s target through 2026.

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📈 Stocks

S&P 500 5,580.94 (-1.97%)
DJIA 41,583.90 (-1.69%)
NASDAQ 17,322.99 (-2.70%)
BRENT CRUDE 73.76 (+0.18%)
* Prices as of Mar 31st, 12:20 AM UTC

Wall Street Slides as Tariff Fears and Inflation Weigh on Markets

U.S. stocks tumbled Friday as persistent inflation, weakening consumer sentiment, and escalating tariff concerns triggered a broad selloff. All three major indexes closed into the red for the week. The S&P 500 is now down over 5% this year, heading for its worst quarter since 2022.

Sticky inflation data showed core PCE rising to 2.8% in February, reinforcing concerns about prolonged price pressures. Meanwhile, consumer sentiment plunged 12%, further dampening investor confidence. The selloff intensified as tech, auto, and airline stocks took heavy losses, with Google, Stellantis, and Delta Air Lines all dropping sharply. Lululemon plunged 14% after warning about weakening consumer spending.

The poor IPO debut of CoreWeave, an AI firm backed by Nvidia, signaled fading enthusiasm for AI investments and broader market uncertainty.

Investor anxiety deepened following Trump’s announcement of 25% auto tariffs set to take effect in April, fueling fears of higher consumer prices and slower economic growth. Treasury yields fell as investors flocked to safe-haven assets, while the VIX surged 16%, reflecting heightened market volatility.

Wall Street analysts are cutting year-end targets for the S&P 500, with UBS, Barclays, and Goldman Sachs all lowering their forecasts. Meanwhile, gold surged past $3,100, reinforcing its role as a hedge against inflation and economic instability. Markets remain on edge as investors brace for further tariff-related disruptions and a volatile second quarter.

Shocking: FCC says it’s investigating Disney and ABC over DEI efforts.Also, Americans are savings more, and pulling back on discretionary purchases. Lastly, over 200 ‘Tesla Takedown’ protests took place throughout US on ‘Global Day of Action’ against Elon Musk’s role with DOGE.

Exciting: Novo Nordisk’s diabetes pill slashes risk of cardiovascular complications by 14% after four years. Also, check this CNN’s report on why Tesla’s ‘American-made’ cars won’t get hit as hard by the auto tariffs. Lastly, Apple set to launch a significantly slimmer iPhone to hopefully reinvigorate interest in its biggest revenue driver..

💵 Personal Finance

How New Tariffs Could Impact Your Wallet

The Trump administration’s new tariffs on over $1 trillion in imports are expected to drive up consumer prices, but Wells Fargo economists say the impact may be cushioned.

A stronger dollar and excess manufacturing capacity in key trading partners like China and Canada could push foreign firms to lower prices, helping offset some costs.

High profit margins in goods-related industries also provide a buffer, though many companies may still pass costs on to consumers.

Importers are stockpiling goods ahead of tariff hikes, temporarily easing inflation pressure. Despite these factors, Wells Fargo estimates a 0.6 percentage point rise in consumer inflation, with price increases unfolding gradually over the next two years.

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.