Breakfast | The fluctuating tariffs between the US and Canada have triggered huge shocks in the US stock market! Trump supports Musk, and Tesla rebounds nearly 4%

Market Overview

Trump's tariffs are fluctuating, and there have been breakthroughs in the US-Ukrainian negotiations. The three major US stock indices all closed at six-month lows, but the decline has eased, with the Nasdaq briefly turning up over 1% during the session; Tesla rebounded nearly 4%, Nvidia closed up 1.7%, Apple fell nearly 3%, and Oracle dropped over 3% after its earnings report; US Steel rose over 5%, and Alcoa rose over 3%.

Chinese concept stocks were strong, with the Chinese concept index closing up nearly 3%. Nio surged 17%, XPeng rose nearly 15%, and Alibaba rose nearly 5%.

Delta Air Lines lowered its first-quarter earnings guidance, closing down 7.25%. Among airline stocks, American Airlines closed down 8.32%, while Southwest Airlines closed up 8.3%.

Trump Threatens to Double Tariffs on Canadian Steel and Aluminum to 50%, Then Concedes

US President Trump threatened to raise tariffs on steel and aluminum imported from Canada to 50% on Wednesday. On Tuesday morning, US stock markets and the Canadian benchmark index turned down, the Canadian dollar plummeted, and US steel and aluminum stocks rose. Shortly after the news broke, reports indicated that the US had not yet signed documents to impose tariffs on Canada, leading to a narrowing of the declines in the Canadian dollar and the S&P 500 index.

Subsequently, Trump claimed he might concede on the threat of tariffs on Canadian steel and aluminum, with the Nasdaq's intraday gains reaching 1%. The decline in the Canadian stock index narrowed, and the Canadian dollar turned up. Ontario Premier Ford stated that after speaking with the US Secretary of Commerce, he would suspend the imposition of additional charges on electricity exports to the US. Following this, White House trade advisor Navarro stated that there would be no 50% tariffs on Canadian steel and aluminum products on Wednesday.

In the US stock market's late session, the White House announced that starting Wednesday, a 25% tariff on steel and aluminum would be imposed on a number of trading partners. US stocks ultimately closed down, while the Canadian dollar rose slightly.

Trump: There Will Not Be an Economic Recession, Will Invite Zelensky to Return to the White House, Expected to Talk with Putin This Week, Violence Against Tesla is Terrorism

Trump stated that the US economy will be "remarkable," and that market sell-offs and concerns are unrelated to him; the prices of eggs and gasoline in the US have already fallen, and interest rates are declining.

Trump stated that he would view the violence against Tesla as domestic terrorism, claiming that Musk is being treated unfairly, and reiterated his intention to buy a Tesla car. Tesla's stock price rose by as much as 6.7%.

The US to Hold Hearings to Investigate Traditional Chinese Chips, Experts: The US is Currently in a Dilemma

According to the Global Times, although the Biden administration has issued a series of export control measures in recent years to limit China's manufacturing capabilities in the most advanced computer chips, it has not taken many targeted measures regarding traditional chips (mature process chips). Huatai Securities predicts that from 2024 to 2027, China's 12-inch mature process capacity will maintain an average annual growth of 27%, reaching a global share of 47% by 2027.

US Government Avoids Shutdown

The US House of Representatives approved a temporary spending bill to avoid a shutdown of the Trump administration on Saturday, sending it to the Senate for a vote. According to the bill, the US federal government can continue to operate with funding until September 30, 2025, which is the last day of the current fiscal year.

Nvidia GTC Preview

Nvidia will hold the GTC conference from March 17 to 21, with CEO Jensen Huang delivering a keynote speech at 1 AM Beijing time on March 19, followed by an investor meeting at 11:30 PM on the same day Three main points of concern:

First, the release of the B300 and GB300 chips, expected to be based on TSMC's 4NP process, with a computing power increase of about 50%; second, the upgrade of CPO switch technology, driven by silicon photonics technology, with mass production of Quantum 3400 and Spectrum 5 expected in the second half of 2025, significantly increasing switching capacity; third, the upgrade of the NVL288 rack-level interconnect architecture, possibly launched in sync with Rubin, using UBB+OAM structure to address heating issues.

Trump and Powell, who will save the U.S. stock market this time?

Generally speaking, a drop of the S&P 500 below the 200-day moving average is enough to trigger intervention from the Federal Reserve or the White House. However, analysts generally believe this time is different. Trump has explicitly hinted at "manufacturing an economic recession," while the Federal Reserve is constrained by inflation, leaving limited policy space.

U.S. January JOLTS job openings at 7.74 million, exceeding expectations, layoffs decrease, voluntary resignations increase

The JOLTS report data indicates that the labor market remains resilient as Trump officially took office.

Manus platform announces strategic cooperation with Alibaba Tongyi Qianwen team

The two parties will realize all functions of Manus based on the Tongyi Qianwen series of open-source models on domestic models and computing power platforms.

Report: Meta collaborates with TSMC to produce training chips

Currently, this chip has entered a small-scale deployment phase, and if testing goes smoothly, Meta plans to expand production scale for widespread application. Meta executives stated that they plan to start using self-developed chips for training by 2026, initially applied to recommendation systems and then expanded to generative AI products, such as the Meta AI chatbot.

Hesai Technology's fourth-quarter revenue exceeds expectations with a 28% growth

The company has achieved its first annual profit, with this year's shipment guidance raised by as much as 50%.

Hesai Technology becomes the world's first publicly listed lidar company to achieve annual profitability and positive operating cash flow, with annual revenue increasing by 10.7% year-on-year to 2.08 billion yuan, setting a new historical high, and a non-GAAP net profit of approximately 13.7 million yuan, with positive operating cash flow of 63 million yuan; last year's delivery volume increased by 126% year-on-year to 501,900 units, with annual deliveries doubling for four consecutive years, and this year's shipment guidance raised to 1.2 million to 1.5 million units, an increase of 139% to 200% compared to last year.

Hesai Technology plans to mass-produce lidar for L3 autonomous driving in the second quarter of this year, with an annual shipment target of 200,000 units for robotic lidar