Breakfast | US stocks "Black Monday"! Tesla plummets 15%, NVIDIA drops over 5%

Market Overview

Trump's remarks have triggered fears of a recession in the U.S., with the Nasdaq leading the decline, marking the largest single-day drop since September 2022. Tesla plummeted 15%, the largest single-day drop since September 2020, erasing all gains since the election; NVIDIA fell over 5%, Apple dropped 4.85%, Google A declined 4.49%, Meta fell 4.42%, Microsoft dropped 3.34%, and Amazon decreased by 2.36%.

Among ETFs, the Direxion FTSE China Bull 3X ETF (YINN) closed down 8.40%, the China Concept Internet Index ETF (KWEB) closed down 4.27%, and the China Technology Index ETF (CQQQ) closed down 3.37%.

In popular Chinese concept stocks, Fangdd fell 12.65%, ZEEKR dropped 11.61%, Zhihu declined 10.35%, and Alibaba fell 5.75%.

Currently, U.S. stocks are facing multiple adverse factors, including concerns about an economic recession, escalating trade tensions, risks of a government shutdown, market expectations of an imminent interest rate hike in Japan, the unwinding of yen arbitrage trades, breaches of key technical indicators, worsening market sentiment, and investors turning to safe-haven assets.

U.S. Stocks Suffer "Black Monday" Bloodbath! Trump Does Not Rule Out the Possibility of a Recession This Year

Last week, the Atlanta Federal Reserve significantly lowered its GDP forecast for the U.S. in the first quarter, predicting a negative growth of 2.8%, further raising recession concerns. In response, Trump stated, "What we are doing is very significant, there will always be a transition period, it takes a little time."

Increasing speculation suggests that Trump is willing to endure economic and market turmoil to achieve his long-term goals involving tariffs and reducing the size of government. TD Securities noted that just a few weeks ago, he was asked whether he thought the U.S. economy was re-accelerating, and now, suddenly, "economic recession" is being repeatedly mentioned, with the market shifting from excitement about growth to absolute despair.

Trump's Chief Economic Advisor Soothes the Market: Q2 Economic "Takeoff" Expected, Trade Uncertainty Could Be Resolved in April

Hassett stated, "There are many reasons to be very optimistic about the future economy," suggesting that tax cuts will boost the economy in the second quarter and offset the negative impacts of tariffs. He expects first-quarter GDP to barely show positive growth, with the economy "taking off" in the second quarter due to tax cuts from the Trump administration.

Tesla's Stock Price Plummets 15%, Halving from December Highs, Global Sales Decline Triggers Wall Street Reassessment!

On Monday, Tesla's stock price closed down over 15%, marking the largest daily drop since September 2020, more than halving from its historical high set last December. After a 50% drop in European sales in January, February saw a 49% year-on-year decline in sales in China, with market share falling to 11th place. Additionally, multiple regions across the U.S. have reported incidents of vandalism against Tesla.

Several major Wall Street firms have lowered their sales forecasts and warned that Musk could become a risk. UBS significantly cut its forecast for Tesla's Q1 2025 deliveries to 367,000 units, a year-on-year decline of 5% and a quarter-on-quarter decline of 26%, and lowered Tesla's target stock price to $225.

Five Tycoons Who Supported Trump's Inauguration Have Seen Their Wealth Shrink by Nearly $210 Billion Since That Day

As U.S. stocks decline, companies owned by some wealthy individuals who attended Trump's inauguration are among the hardest hit. The market value of these companies has evaporated by a total of $1.39 trillion compared to the last trading day before Trump's inauguration—January 17.

Among them, Elon Musk's personal wealth has shrunk by $148 billion since then, Amazon founder Jeff Bezos has seen a decline of $29 billion, Google co-founder Sergey Brin has lost $22 billion, and Meta's Mark Zuckerberg and LVMH's Bernard Arnault have lost $5 billion each.

Copying the Electric Vehicle Explosion Curve? Bank of America: "Robot Era" Manufacturing in China is Key, Costs May Drop 70% in Five Years

Bank of America analysis points out that, using Tesla's Optimus Gen 2 as an example, if most of the hardware is produced in China, the cost of the robot could drop by 70% to $17,000 per unit by 2030. Drawing parallels to the explosive growth of the Chinese electric vehicle market, once more components are commercialized and mass-produced, the penetration rate of humanoid robots will rise rapidly.

Novo Nordisk's U.S. Stock Drops Over 9%, Next-Generation Weight Loss Drug CagriSema's Experimental Data Below Expectations

The latest results from the REDEFINE 2 clinical trial show that after 68 weeks of treatment, patients receiving weekly subcutaneous injections of CagriSema lost an average of 15.7% of their body weight. Novo Nordisk had previously predicted that patients taking CagriSema would lose 25% of their weight. Additionally, this result is roughly comparable to Eli Lilly's Zepbound, raising investor concerns that CagriSema may not achieve sufficient differentiation.

Oracle's Earnings Miss Expectations, Optimistic Performance Guidance, Stock Price Initially Rises About 6% Then Turns Down

Oracle's third-quarter revenue and EPS both fell short of expectations, but the company remains optimistic about the expansion of its AI cloud business. The CEO expects revenue growth of 15% in fiscal 2026, higher than the market expectation of 12.6%. The chairman of Oracle stated that the company is on track to double its data center capacity by the end of this year.

TSMC's February Revenue Accelerates Again, Year-on-Year Growth of 43%, AI Chip Demand Remains Strong

TSMC's sales in February accelerated compared to the previous month's year-on-year growth rate of 35.9%. Analysts suggest that as major AI companies continue to aggressively expand their infrastructure, TSMC's revenue is expected to continue to grow rapidly, with projections that its N2 node process revenue could reach $30 billion by 2026, accounting for 22.5% of total revenue.

UBS: Xiaomi's Valuation Already Includes the Most Optimistic Expectations, Production Capacity May Limit Electric Vehicle Business Explosion

UBS believes that after a nearly 60% surge this year, Xiaomi's valuation has fully reflected its future growth potential. There are catalysts for further stock price increases, but the execution conditions required are extremely stringent. The risk and return are now basically balanced at the current valuation, leading to an adjustment of the rating to neutral. If electric vehicle production capacity expansion falls short of expectations, Xiaomi may lose market share in fierce competition.

Wall Street Prophet Ed Yardeni: Wall Street's Patience is Running Thin, the Market May Repeat the 1987 Flash Crash

Yardeni stated that they are concerned that "Tariff Turmoil 2.0" could trigger a rare lightning crash, occurring rapidly and reversing just as quickly, without accompanying economic recession, similar to what happened in 1962 and 1987. He has raised the probability of a U.S. economic recession and a bear market in stocks from 20% over the past three years to 35%