Tesla (TSLA) +2% Tesla shares bounced after a rough Monday, despite being down 36% in Q1 — the worst Q1 in company history. Investors are now eyeing its Q1 delivery report due Wednesday, with Street estimates hovering around 380,000 units . Analysts have been revising expectations lower amid backlash over Elon Musk’s role in Trump’s administration. Chinese EV Makers Up XPeng (XPEV) +1.6% : Delivered 33,205 vehicles in March — its fifth straight 30k+ month. NIO (NIO) +1.6% and Li Auto (LI) +1.4% also gained on strong March deliveries. Nvidia (NVDA) -0.6% Still under pressure after a 19.3% Q1 drop , its worst since 2022. Investor worries over AI spending, tech valuation, and trade tensions are weighing heavily. Johnson & Johnson (JNJ) -5% Fell after a Texas judge dismissed J&J’s third bankruptcy attempt to settle talc-related lawsuits via Chapter 11. PVH Corp (PVH) +18.9% Shares surged after Q4 earnings beat expectations ...
Key Takeaways:
US stocks dipped on Thursday as investor focus shifted from strong GDP data to heightened trade war fears, following Trump’s confirmation of a 25% auto tariff.
The S&P 500 fell 0.3%, on track for its worst quarter since 2023. The Nasdaq 100 lost 0.6% and the Dow Jones dropped 0.4%.
Automakers were among the hardest hit. General Motors, Toyota, and Mercedes-Benz all declined. Trump warned of more severe action if the EU and Canada retaliate.
While the fourth-quarter US GDP growth was revised higher and inflation data was adjusted lower, analysts say markets remain focused on the current economic environment, not past performance.
The bond market reflected inflation concerns, with short-dated Treasuries outperforming, and the 10-year yield rising to 4.36%.
Investors now await the PCE inflation report on Friday — the Fed’s preferred gauge — which may offer clues on the timing of rate cuts.
Sentiment among individual investors has turned slightly more positive, with bearish views easing according to the AAII survey, although pessimism remains elevated historically.
BlackRock sees US stocks regaining leadership over European equities, noting that Europe's current upside is narrowly tied to the defence and banking sectors.
Summary:
Despite a solid economic backdrop, markets are on edge as Trump’s trade actions stir uncertainty. With inflation still sticky and tariffs in play, volatility remains the name of the game. Investors are bracing for Friday’s inflation data and April 2’s tariff “Liberation Day” for fresh direction.
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