Breakfast | Trump once again criticizes Powell, scaring the market: Tesla plummets 6%, leading the decline among tech giants

Market Overview

Trump once again criticized Powell, scaring the market, as the U.S. experienced a triple whammy of stocks, bonds, and currencies.

All three major U.S. stock indices closed down over 2%, with the Nasdaq briefly falling nearly 4%, and the fear index VIX rose by 14.13%.

Ahead of earnings reports, Tesla fell 6%, and Nvidia dropped 4.5%, leading the decline among the seven tech giants. Meta Platforms fell 3.35%, Amazon dropped 3.06%, Microsoft decreased by 2.35%, Google A fell 2.31%, and Apple dropped 1.94%.

Among chip stocks, TSMC ADR fell 2.56%, and AMD dropped 2.22%.

Trump Criticizes Powell Again: Big Loser, Cut Rates Now! Otherwise, It Will Hurt the Economy

Following his criticism of Powell last Thursday and Friday, Trump stated on Monday that the costs of energy and food items like eggs have decreased, indicating almost no inflation, but the economy may slow down unless "Mr. Too Late," the big loser Powell, cuts rates now. The "New Federal Reserve News Agency" believes that Trump's call for rate cuts aims to mitigate the impact of the trade war, as this round of tariffs is larger and inflation may be more severe than during his first term, making it harder for the Federal Reserve to make choices.

Shigeru Ishiba's Strong Statement: Japan Will Not Make Unilateral Concessions in U.S. Tariff Negotiations

Shigeru Ishiba stated in parliament on Monday: "If Japan gives up everything, we will not be able to ensure our national interests." This is one of the most confrontational statements made by Ishiba since the Trump administration initiated a trade war against Japan's sensitive automotive and agricultural sectors.

Trump Claims Tariff Negotiations Are Progressing Well, Mexican President: We Don't Even Have Consensus

Mexican President Sinbloom stated that he discussed steel, aluminum, and automotive tariffs with Trump last week, and both believed the call was "very productive." However, no final agreement was reached during the call, nor was there any consensus.

Trump's Tariffs Are Hurting Americans

The deadlock in U.S. tariff policy is damaging the domestic economy and undermining investor confidence. According to CCTV News, Trump's originally hoped-for quick resolution of the "tariff war" has evolved into a "protracted battle," causing him great anxiety. Now, many economic indicators show that these tariff policies may push the U.S. and many parts of the world toward economic recession, and the erratic "tariff war" has not only failed to persuade other countries but has also placed enormous pressure on American businesses and citizens.

Tesla's Q1 Report to Feature First "Company Update," Investors Focus on Five Key Issues

Tesla will release its Q1 2025 financial report at 5:30 AM Beijing time on April 23, and will conduct its first "company update." The market speculates that this may be an opportunity for Tesla to reveal more about its upcoming projects, particularly the affordable electric vehicle set to be produced in the first half of 2025.

Investors will closely monitor Musk's fulfillment of his autonomous driving commitments, progress on affordable models, trends in declining sales, tariff impacts, and how Musk's political involvement may damage the company's image. These five issues will determine whether Tesla can regain Wall Street's trust and emerge from its current predicament.

iPhone 17 Series Struggles with Core Material Shortages

According to media reports from the supply chain, due to a shortage of low thermal expansion coefficient fiberglass cloth materials, the inventory of Apple's new generation smartphone iPhone 17 series is extremely tight. "Cook is anxious and urging suppliers every day. This material has a significant impact and is an essential core component for SoC chips, RF packaging substrates, camera modules, and batteries."

Wells Fargo Analyst: After Microsoft, Amazon has also suspended some data center leasing commitments

Wells Fargo analysts stated in a report on Monday that they learned over the past weekend that Amazon has suspended leasing negotiations for shared data centers with other companies. This is another sign of a major tech giant adopting a cautious stance on capital expenditures, following Microsoft, indicating that economic concerns may be affecting tech companies' spending plans.

Bank of America Hartnett: Sell U.S. stocks on rallies in Q2 until the Fed cuts rates and Trump reduces tariffs

Looking ahead to the second quarter of 2025, Hartnett's short-term strategy is to recommend reducing holdings on rallies until the Fed cuts rates, U.S. tariffs are reduced, and a clear shift towards tax reduction policies is established:

If a policy panic is expected to arrive soon, one could slightly test at 5400 points on the S&P 500 and increase holdings at 5100 points; if a short-term mild recession is anticipated, one could wait to buy heavily at 4800 points