π¨ Billionaires invest in costly longevity treatments for youth β March 4, 2025
TSMC to invest $100 billion in US manufacturing
Hi! Itβs Jack and The Stock Insider team with the best, non-partisan daily newsletter related to politics, the US stock market, and business. π
The Podcast:
The Markets:
Futures Highlights
Futures markets were mixed today with energy commodities showing notable moves while major indices remained relatively subdued. Energy products like Natural Gas and Gold posted positive changes, whereas Crude Oil and some indices marked declines.
π΄ Crude Oil: 67.51 (β0.86 | β1.26%)
π’ Natural Gas: 4.2200 (+0.0980 | +2.38%)
π’ Gold: 2934.60 (+33.50 | +1.15%)
βͺ Dow: 43112.00 (β135.00 | β0.31%)
βͺ S&P 500: 5817.50 (β43.25 | β0.74%)
βͺ Nasdaq 100: 20288.00 (β180.25 | β0.88%)
π΄ Russell 2000: 2079.40 (β26.50 | β1.26%)
Forex & Bonds Highlights
Currency pairs and treasuries experienced only modest shifts, with most Forex values remaining nearly flat. Meanwhile, the shorter-dated treasuries faced declines beyond the 1% threshold, indicating a slight shift in bond sentiment.
βͺ EUR/USD: 1.0535 (+0.0049 | +0.47%)
βͺ USD/JPY: 148.43 (β1.06 | β0.71%)
βͺ GBP/USD: 1.2730 (+0.0029 | +0.23%)
βͺ BTC/USD: 82787.50 (β540.60 | β0.65%)
π΄ 5-Year Treasury: 3.93 (β0.061 | β1.53%)
π΄ 10-Year Treasury: 4.134 (β0.046 | β1.10%)
βͺ 30-Year Treasury: 4.447 (β0.017 | β0.38%)
Major News Stocks
Among the major news stocks, a couple of names managed gains while most stocks faced declines. Listed from the biggest winners to the biggest losers, investors saw a wide range of performance across the board.
π’ GEL: +2.88%
π’ ABBV: +1.17%
βͺ AZO: β0.44%
π΄ JPM: β1.52%
π΄ AAPL: β1.58%
π΄ FROG: β1.80%
π΄ MSFT: β2.14%
π΄ TGT: β2.80%
π΄ TSLA: β2.84%
π΄ AMZN: β3.42%
π΄ BBY: β3.53%
π΄ OKTA: β3.68%
π΄ TSM: β4.19%
π΄ STXS: β5.83%
π΄ AVGO: β6.05%
π΄ NVDA: β8.69%
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Beyond the Paywall:
Events Affecting The Markets Today & Beyond
Most Promising Stocks of The Day
Most Impactful News Summaries
Today:
ββOn Tuesday, March 4, 2025, several significant events are poised to influence the U.S. stock market:β
1. Implementation of New Tariffs
The U.S. government has confirmed the imposition of substantial tariffs effective today: βtheguardian.com
Canada and Mexico: A 25% tariff on all imports from these countries.β theguardian.com
China: An additional 10% tariff on imports, escalating existing trade tensions. β The Australian
These measures aim to address concerns over illegal immigration and the influx of illicit substances, particularly fentanyl. However, they have already sparked retaliatory actions: βAssociated PressΒ‘
Canada: Announced a 25% tariff on $20.7 billion worth of U.S. imports.β The Australian
China: Filed complaints with the World Trade Organization and is investigating U.S. fiber optic products. theguardian.com
The immediate market response has been negative, with major indices experiencing declines. The S&P 500 recorded its worst day of the year, and the Nasdaq Composite fell by 3.1%. Analysts warn that these tariffs could lead to increased inflation and reduced corporate profits, potentially triggering a broader economic downturn. βBolls and Wells
2. President Trump's Address to Congress
President Donald Trump is scheduled to address Congress tonight, marking his first such speech since his re-election. He is expected to discuss:β reuters.com
Economic Policies: Advocating for the extension of the 2017 tax cuts. βreuters.com
Border Security: Proposing increased measures to strengthen border control.β
Government Restructuring: Highlighting recent efforts to reduce federal employment and cut foreign aid.β reuters.com
This address comes amid heightened tensions due to the newly imposed tariffs and is anticipated to influence investor sentiment and market dynamics. βreuters.com
3. Economic Data Releases
Several key economic indicators are set for release today:β Financial Times
PMI Manufacturing Final: Scheduled for 9:45 AM ET, providing insights into the manufacturing sector's health.β us.econoday.com
ISM Manufacturing Index: At 10:00 AM ET, offering a broader view of manufacturing activity.β
Construction Spending: Also at 10:00 AM ET, detailing expenditures in the construction sector.β
These reports will offer valuable information on the current state of the economy and may influence market movements. β
4. Federal Reserve Speeches
Several Federal Reserve officials are slated to speak today, including:β
John Williams: President of the Federal Reserve Bank of New York, discussing monetary policy.β
Investors will closely monitor these speeches for insights into the Fed's stance on interest rates and its response to the current economic climate. β
5. Corporate Earnings Reports
Major companies are releasing their earnings reports today:β
Target: The retail giant's performance will shed light on consumer spending trends.β
AutoZone: Insights into the automotive sector's health.β
CrowdStrike: A key player in cybersecurity, reflecting tech sector dynamics.β
These reports are crucial for assessing the health of various sectors and can significantly impact stock valuations. β
6. International Economic Developments
Global markets are reacting to the U.S. tariffs:β theguardian.com
European Markets: Stocks have declined, with automakers particularly affected due to their exposure to U.S. tariffs.β
Asian Markets: Indices have fallen amid concerns over escalating trade conflicts.β reuters.com
These international movements can indirectly influence U.S. markets through global economic interdependencies. β
In summary, today's eventsβincluding the implementation of new tariffs, the President's address, economic data releases, Federal Reserve speeches, corporate earnings reports, and international market reactionsβare poised to have a multifaceted impact on the U.S. stock market. Investors should closely monitor these developments to navigate the evolving economic landscape.β
Most Promising Stocks of The Day:
Most Impactful News Summaries:
US tariffs raise concerns over global economic growth
The US yield curve steepened as President Trump's tariffs on Canada, Mexico, and China took effect, raising concerns about global growth. Rates on 30-year Treasuries increased, while shorter-term yields fell, reflecting market uncertainty.
The new tariffs, which impose 25% duties on most Canadian and Mexican imports and 20% on China, affect about $1.5 trillion in annual imports. This shift indicates a change in Trump's approach, moving from threats to actual levies.
Markets reacted with increased risk aversion, leading to gains in the Swiss franc and Japanese yen against the dollar. The Dollar Spot Index fell 0.2%, as traders await the US payrolls report amid signs of a slowing economy.
Trump calls China a unique economic challenge for trade
The Trump administration presented its 2025 Trade Policy Agenda, labeling China as a "unique economic challenge" to U.S. trade. This comes as tariffs on Canada, Mexico, and China are set to take effect.
The report criticizes past U.S. trade strategies and emphasizes the need for a strong approach to address economic and national security issues. It highlights China's failure to meet trade commitments and its impact on U.S. industries.
Additionally, the report condemns the World Trade Organization for not effectively addressing China's economic practices. It also raises concerns about China's dominance in sectors like semiconductors and maritime logistics.
Source: https://ca.news.yahoo.com/trump-policy-labels-china-unique-093000628.html
Semiconductor ETF poised for growth in AI spending
Morgan Stanley predicts that Amazon, Microsoft, Alphabet, and Meta Platforms could spend $300 billion on data center infrastructure and chips for AI in 2025. Recent forecasts suggest this spending may exceed initial estimates, benefiting companies like Nvidia, Broadcom, and AMD.
The iShares Semiconductor ETF, which includes 30 top semiconductor stocks, is currently down 21% from its peak. This ETF focuses on U.S. companies that design and manufacture chips, particularly those involved in AI hardware, offering investors a chance to buy at a discount.
Despite a recent decline, the iShares ETF has delivered an annual return of 11.1% since 2001. It is well-positioned for the anticipated AI spending boom, with significant investments expected in the coming years. Investors are advised to consider it as part of a diversified portfolio.
Source: https://www.fool.com/investing/2025/03/04/1-semiconductor-etf-buy-hand-2025-ai-spending-boom/
Toymakers warn of higher prices due to tariffs
Toymakers are facing new challenges after President Trump raised tariffs on Chinese imports by an additional 10%, totaling a 20% increase. This change has left many businesses scrambling to adjust their pricing strategies ahead of the spring sales season.
The toy industry, heavily reliant on Chinese manufacturing, is particularly affected, with about 80% of toys sold in the U.S. made in China. Companies like Basic Fun! and Clixo are now planning to raise prices for consumers, as the increased costs become unsustainable.
The Toy Association is advocating for exemptions for toys from these tariffs, citing the negative impact on small businesses. Concerns about rising prices and economic uncertainty are prevalent among toymakers at the North American Toy Fair in New York City.
Source: https://www.bbc.com/news/articles/cg701mgz2d4o
US dollar may surge due to potential tariffs
The US dollar may rise significantly due to potential tariffs under a Trump-led administration, according to Goldman Sachs. This could make the dollar more appealing to traders, complicating efforts by BRICS nations to reduce dollar dominance.
As the dollar strengthens, remittances sent home by workers abroad could have a greater impact, benefiting families receiving these funds. However, escalating trade tensions may increase market volatility and challenge BRICS' economic strategies.
Local currencies in BRICS countries have already weakened against the dollar this year. The ongoing push for de-dollarization may face delays as the dollar's strength grows amid trade conflicts and inflation concerns.
Maserati MC20 sets autonomous speed record at 197 mph
The Maserati MC20 has set a new autonomous speed record at Kennedy Space Center, reaching 197 mph. This surpasses the previous record of 192 mph from 2022. The record was achieved using AI technology developed by PoliMOVE-MSU.
The record-breaking run took place at the Space Florida Launch and Landing Facility, a 15,000-foot runway. This event was part of the 1000 Miglia Experience Florida, in collaboration with the Indy Autonomous Challenge and Politecnico di Milano.
This achievement highlights advancements in autonomous driving technology, showing how AI can manage high speeds effectively. The project aims to transfer racing technology to everyday streetcars.
Source: https://hypebeast.com/2025/3/maserati-mc20-autonomous-speed-record-info
Billionaires invest in costly longevity treatments for youth
Billionaires are increasingly investing in longevity treatments, shifting focus from traditional status symbols like yachts to youthful appearances. Tech leaders are funding biotech labs and startups aiming to slow or reverse aging, with significant investments from figures like Sam Altman and Peter Thiel.
The longevity industry is rapidly growing, with high-end clinics offering expensive programs that promise age reversal. Despite the hype, many treatments are experimental and carry risks, as seen in past incidents involving unapproved therapies.
The global anti-aging market is expected to grow from $25.1 billion in 2020 to $44.2 billion by 2030. Currently, these advanced treatments remain accessible mainly to the wealthy, who are willing to invest in their quest for extended youth.
China bans Illumina gene sequencers over tariff disputes
China has banned imports of gene sequencers from U.S. company Illumina. This decision came shortly after the U.S. imposed an additional 10% tariff on Chinese goods.
The ban follows Illumina's placement on China's "unreliable entity" list in February. China claims Illumina's actions harmed Chinese enterprises and violated market principles.
Illumina generates about 7% of its sales from China. The company has not yet responded to requests for comment on the ban.
China raises tariffs on U.S. farm exports by 15%
China will impose new tariffs of up to 15% on major U.S. farm products, including chicken, pork, and soy, starting March 10. This follows the U.S. raising tariffs on Chinese imports to 20%.
Additionally, China has added 10 more U.S. firms to its unreliable entity list, restricting their trade and investment activities in China. These firms include several Lockheed Martin divisions, linked to military cooperation with Taiwan.
China also added 15 U.S. companies to its export control list, including defense firms. This prohibits the export of certain items to these companies, citing national security concerns.
Source: https://www.npr.org/2025/03/04/g-s1-51892/china-tariffs-u-s-farm-exports
China promotes RISC-V chips to reduce tech dependence
China plans to promote the use of open-source RISC-V processors nationwide to reduce dependence on Western technology. A policy guideline is expected to be announced soon, with input from multiple government departments.
RISC-V technology is seen as a cost-effective alternative for various chip designs, including those used in smartphones and AI servers. Chinese companies have increasingly adopted it, viewing it as geopolitically neutral amid rising tensions with the U.S.
Major Chinese firms like Alibaba and startups are developing RISC-V processors. Industry experts suggest that the growing popularity of AI applications could further drive the adoption of RISC-V chips in the domestic market.
Plaintiffs support $2.8 billion athlete compensation settlement
Lawyers for plaintiffs in three athlete-compensation cases against the NCAA defended a proposed $2.8 billion settlement. This deal would allow Division I schools to pay athletes for their name, image, and likeness starting in the 2025-26 school year.
The plaintiffs responded to over 70 objections filed in January, including concerns about roster limits that could displace walk-on athletes. They argued that the settlement is a significant compromise and in the best interests of the class.
The plaintiffs noted that more than 73,000 athletes have filed claims, contrasting this with the number of objections. They urged the court to approve the settlement without delays, emphasizing its potential to benefit college athletes financially over the next decade.
Source: https://ca.sports.yahoo.com/news/plaintiff-defend-house-settlement-creates-031400840.html
Iron ore prices fall ahead of Trump tariffs
Iron ore futures fell ahead of new U.S. tariffs on Chinese imports, with the May contract on China's Dalian Commodity Exchange down 1.39% to 779 yuan ($106.93) per metric ton. Prices hit a low of $99.35, the lowest since mid-January.
Chinese steel mills are cutting production to reduce pollution before the National People's Congress meeting. This has contributed to the decline in iron ore prices, as market focus shifts amid ongoing trade tensions with the U.S.
In response to the tariffs, Beijing plans to retaliate, potentially targeting American agricultural products. Shares of Australian miners also dropped due to the tariff tensions, impacting market sentiment.
Source: https://www.reuters.com/markets/commodities/iron-ore-slips-ahead-looming-trump-tariffs-2025-03-04/
Over half of adults predicted to be obese by 2050
A new study predicts that over 50% of adults worldwide will be overweight or obese by 2050, with significant increases expected in lower-income countries. Currently, nearly half of adults are already affected, a doubling since 1990.
China, India, and the USA are projected to have the largest populations of overweight or obese individuals. However, sub-Saharan Africa is expected to see a 250% rise, with Nigeria's numbers tripling by 2050.
The study highlights a rapid increase in obesity rates among young people. Experts suggest that immediate government action could help prevent a worsening crisis in global obesity, particularly among children and adolescents.
Source: https://www.bbc.com/news/articles/cy87d2g81yxo
Rising inflation expectations worry the Federal Reserve
Inflation expectations among Americans are rising, raising concerns for the Federal Reserve. Recent surveys show a significant drop in consumer confidence and increased fears about higher prices due to changing tariffs and trade policies.
Inflation has increased to 3% from a low of 2.4% last summer. Retail sales and consumer spending have also declined, indicating potential challenges for the economy, despite low unemployment and steady growth.
The Federal Reserve is cautious about adjusting interest rates amid these developments. Officials are monitoring inflation expectations closely, as they could influence consumer behavior and complicate efforts to maintain price stability.
TSMC to invest $100 billion in US manufacturing
Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest $100 billion in U.S. manufacturing over the next four years, as announced by President Donald Trump. This investment will support the construction of five facilities in Arizona.
The project is expected to create around 20,000 jobs. TSMC has already received over $6 billion in funding through the CHIPS Act, which helped support a $65 billion investment in Phoenix for semiconductor facilities.
This announcement follows Apple's recent plan to invest $500 billion in the U.S. over the same period. Additionally, executives from OpenAI, Oracle, and SoftBank have pledged an initial $100 billion for AI data centers in the U.S.
Nvidia shares drop 9% over tariff concerns
Nvidia shares dropped nearly 9% on Monday due to confirmed tariffs from Canada and Mexico, contributing to a 13% decline since the company reported strong earnings last Wednesday. The stock is now at pre-election levels.
The tariffs, set to take effect Tuesday, could impact Nvidia's manufacturing, as some products are made in Mexico and the U.S. The companyβs market cap fell to $2.79 trillion after losing $265 billion in value.
Nvidia's finance chief noted that the impact of tariffs remains uncertain. The company is also facing scrutiny over exports to Singapore, which some analysts believe may be a route to China.
Source: https://www.cnbc.com/2025/03/03/nvidia-shares-fall-9percent-on-tariff-fears.html
Inflation risks are increasing, according to Fed's Musalem
St. Louis Federal Reserve President Alberto Musalem stated that risks for higher inflation are increasing. He expects inflation to gradually approach the Fed's 2% target, but recent data shows rising inflation expectations among consumers and businesses.
Musalem highlighted a significant drop in consumer confidence and a sharp rise in manufacturing prices. He noted that these trends indicate a growing sensitivity to inflation expectations, which could lead to upward pressure on prices.
Despite expectations for interest rate cuts in 2025, the Fed has maintained rates at 4.25%-4.5%. Investors are also concerned about potential U.S. tariffs on imports from China, Mexico, and Canada, which may further complicate the inflation outlook.
Anthropic valued at $61.5 billion after new funding
Anthropic, an artificial intelligence start-up, announced a new funding deal that values the company at $61.5 billion, an increase from previous valuations. The round, led by Lightspeed Venture Partners, adds $3.5 billion to its total funding of over $14.8 billion since 2021.
This funding comes as investor interest in AI companies has returned, following a slowdown in 2024. Rivals like OpenAI are also seeing significant funding, with a deal expected to value it at $300 billion, nearly double its previous worth.
Founded by former OpenAI employees, Anthropic aims to develop AI with safety measures. The company has received substantial investments from major tech firms, including Amazon and Google, and operates its AI systems using their data centers.
Source: https://www.nytimes.com/2025/03/03/technology/anthropic-ai-fund-raising-61-billion.html
Lockheed debuts affordable $150,000 cruise missile
Lockheed Martin has introduced a new cruise missile, the Common Multi-Mission Truck (CMMT), priced at about $150,000. It has a range of over 500 miles and aims to meet U.S. defense needs in the Pacific.
The CMMT missile is designed to be modular, allowing for different versions, including longer-range and maritime strike variants. This approach supports a strategy of maintaining a large inventory of affordable weapons.
Lockheed plans to produce 2,500 CMMT missiles annually if the Pentagon places an order. This development reflects a shift towards cheaper armaments in response to global military dynamics.
Source: https://ca.finance.yahoo.com/news/eyeing-pacific-lockheed-unveils-low-183912101.html