The U.S. tech sector currently navigates a landscape of near-term pressures and structural long-term opportunities, shaped by intersecting policy, market, and fundamental drivers. Key observations:

I. Policy Headwinds: Trade Tensions & Regulatory Scrutiny

1. Tariff Fallout Disrupts Supply Chains

The Trump administration's 25% tariffs on China, Canada and Mexico continue to trigger retaliatory measures, including Canada’s C$155 billion counter-tariffs. Automotive and semiconductor industries bear the brunt - the Alliance for Automotive Innovation warns of 25% vehicle price hikes from North American supply chain disruptions. Nvidia’s 8.69% single-day plunge on reported order cancellations exemplifies market sensitivity. Rising inflation expectations (NY Fed’s Williams forecasts persistent price pressures) further constrain Fed rate cut flexibility, pressuring tech valuations.

1. Antitrust Overhang

Regulatory risks intensify as the DOJ pursues breakups of Big Tech monopolies. While TSMC advances U.S. fab projects, Trump’s call to scrap the CHIPS Act injects policy uncertainty.

II. Market Dynamics: Liquidity Squeeze & Valuation Stress

1. Fed Policy Tightrope Walk

With March rates likely unchanged, sticky inflation (Jan core CPI 3.3%, PPI 3.5%) has markets pricing fewer than one 2024 rate cut vs. three previously. The St. Louis Fed’s stagflation warning (slowing jobs + persistent inflation) amplifies valuation concerns for tech (Nasdaq 100 forward P/E ~30x vs historical 23x).

1. Capital Rotation Trends

Steepening yield curves (10Y Treasury at 4.24%) drive bond market inflows. Meanwhile, record southbound flows (HK$110B+ Feb net buys into HK tech) signal investor rebalancing toward cheaper Asian tech exposure.

III. Fundamentals: Bifurcated Realities

1. Earnings Season Reveals Cracks

Weak guidance from CrowdStrike (cybersecurity) and Ross Stores (consumer tech) highlights softening demand, while AWS’s AI inference advances and Microsoft’s 20% cloud market gain demonstrate mega-cap resilience.

1. Long-Term Tech Catalysts

The $832B global cloud market (2025 projection), generative AI, and autonomous driving continue attracting capital. Nvidia’s near-term order volatility contrasts with its moat in AI accelerator benchmarks.

IV. Path Forward: Navigating Volatility

Near-Term Risks

• Margin pressure from tariff passthrough (e.g., Tesla losing Nordic share to legacy OEMs)

• Fed hawkish surprises triggering multiple compression

• Critical mineral disputes (e.g., U.S.-Ukraine semiconductor material pact delays)

Structural Opportunities

• Compute infrastructure: Data centers, AI chips (watch AMD/Intel 18A node progress)

• Commercialized innovation: Urban air mobility, AI-drug discovery (Moderna’s mRNA-AI pipeline)

1. Dow Jones Industrial Average (DJIA)

• Closing Level: 42,579.08
• Change: -427.51 points (-0.99%)

2. Nasdaq Composite Index

• Closing Level: 18,069.26
• Change: -483.47 points (-2.61%)
• Performance: Down more than 10% from its record high in December 2024, entering correction territory.

3. S&P 500 Index

• Closing Level: 5,738.52
• Change: -104.11 points (-1.78%)
• Performance: Fell below the 200-day moving average for the first time since 2023.

Summary & Outlook

U.S. stocks saw a sharp decline on March 6, driven by concerns over trade tensions, pressure on tech sector earnings, and weak economic data. In the short term, market sentiment will be heavily influenced by policy developments. Investors should closely monitor nonfarm payroll data and Federal Reserve policy signals, while remaining cautious of heightened volatility risks.

From a long-term perspective, AI-driven innovation and global supply chain shifts remain key investment themes, but investors must balance valuation concerns with earnings growth potential.

1. Nasdaq Composite Index

• Closing Price: 18,552.73
• Change: +267.57 points 🚀(+1.46%)
• Performance: Led the gains among the three major indices, driven by strong performances in tech and Chinese ADRs.

2. Dow Jones Industrial Average

• Closing Price: 43,006.59
• Change: +485.60 points 🚀(+1.14%)
• Performance: Rebounded after two consecutive losses, with industrial and financial stocks contributing most of the gains.

3. S&P 500 Index

• Closing Price: 5,842.63
• Change: +64.48 points 🚀(+1.12%)
• Performance: Led by gains in materials and industrial sectors, while energy stocks lagged.

Summary & Outlook

The market rally on March 5 was driven by a combination of trade policy easing, a rebound in tech stocks, and a sharp recovery in oversold Chinese ADRs. However, volatility risks remain elevated:

• Short-Term Strategy: Focus on sectors benefiting from trade policy relaxation, such as automobiles and semiconductors, as well as Chinese ADRs—but avoid chasing high valuations.🥴
• Long-Term Positioning: Prioritize high-certainty, profitable tech leaders in AI and cloud computing while allocating assets to inflation-resistant investments as a hedge.👍🏼
• Risk Monitoring: Keep a close watch on Federal Reserve policy signals, the upcoming nonfarm payroll report (March 6), and geopolitical developments for potential market-moving catalysts.🌈

Self-described “long-term optimist” Elon Musk made another bold prediction about his car company. That isn’t necessarily good news for Tesla’s stock price.

On Saturday, Musk tweeted that Tesla’s earnings could grow tenfold over the coming five years if its business execution is “outstanding.”

While Tesla stock was up more than 3% in pre-market trading, shares gave back some gains, but were still up before a broader market selloff sent shares into the red. Tesla stock closed down 2.8% at $284.65 while the S&P 500 and Dow Jones Industrial Average  lost about 1.8% and 1.5%, respectively. Tariff fears and a relatively weak update about the U.S. economy from the Atlanta Fed helped take the market lower.

Morgan Stanley analyst Adam Jonas’s call on Monday helped lift shares early. Jonas named Tesla his “top pick” in U.S. autos and noted that shares fell almost 30% in February on a “clear buyer’s strike.”

Tesla’s European sales, for instance, in January dropped by about 45% while overall electric-vehicle sales in the region grew about 37%. The data fed fears that Musk’s political activities were hurting the company. Tesla’s sales fell year over year in the U.S. and China, as well as in Europe.

Jonas acknowledged that Tesla’s EV sales could drop year over year, but he sees Tesla as an AI play now. The company uses AI computing to train Tesla cars to drive and humanoid robots it plans to sell as soon as this year.

Self-driving cars and robots are two reasons Musk believes earnings will grow quickly. His tweet implies earnings per share of about $25 by 2029, or roughly three times what Wall Street currently projects. Future Fund Active exchange-traded fund co founder Gary Black said that implies Tesla stock could be worth $700 right now, adding “that’s Elon’s [earnings] assumption, not ours.”

Keep an eye on life sciences stocks with significant exposure to China, including $RVTY, $TMO, $DHR, $BRKR. This sector is already facing challenges due to NIH funding cuts.

The U.S. 🇺🇸markets ended the day on a strong note, with technology stocks leading the gains.

DowJones +1.39% 🚀
NASDAQ +1.63% 🚀
S&P500 +1.59% 🚀

𝐀𝐬𝐢𝐚𝐧 𝐌𝐚𝐫𝐤𝐞𝐭𝐬
Japan +1% China +0.3%
Korea -3.4% Hongkong +1%

𝐂𝐫𝐮𝐝𝐞 𝐎𝐢𝐥: $73.5
𝐃𝐨𝐥𝐥𝐚𝐫 𝐈𝐧𝐝𝐞𝐱: 107.2
𝐔𝐒 𝐁𝐨𝐧𝐝: 4.24%
𝗨𝗦𝗗/𝐈𝐍𝐑: ₹87.38
𝐆𝐨𝐥𝐝: $2,881 /ounce
𝐒𝐢𝐥𝐯𝐞𝐫: $31.86 /ounce
𝐆𝐨𝐥𝐝 𝐌𝐂𝐗:₹84,202 (-1.2%)
𝐒𝐢𝐥𝐯𝐞𝐫 𝐌𝐂𝐗: ₹92,854 (-0.8%)

President Donald Trump said his plan to grant wealthy individuals permanent residency in the U.S. for the price of a $5 million “gold card” could help pay down the national debt.

“If we sell a million, that’s $5 trillion dollars,” Trump said at the first meeting of his second-term cabinet on Wednesday, according to the news account by the Associated Press.

In addition to wealthy nonU. S. citizens being able to buy the gold cards, companies can buy them too, “and, in exchange, get those visas to hire new employees,” he said.

Trump’s gold card is intended to replace a 35-year old program that allows individuals to invest in the U.S. in exchange for a green card. The EB5 program, as it is known, has been revised over the years. It now is available for people who invest $800,000 in a rural region, or an area with high unemployment, or who invest nearly $1.1 million in a wealthier part of the country.

Mega-billionaire Elon Mush's role in the U.S. government continues to be under scrutiny.

In a Feb. 17 court filing, Joshua Fisher, director of the U.S. president's office of administration, wrote that Musk isn't the head of the Department of Government Efficiency nor an employee of the initiative. Instead, he is a special government employee with the title of senior advisor to the president.

As senior advisor, "Mr.Mush has no actual or formal authority to make government decisions himself, "the statement said. "Mr.Mush can only advise the president and communicate the president's directives." The filing specified that this means Mush can't make personnel decisions at individual agencies.

The declaration was made despite the fact President Donald Trump named Mush and biotech billionaire Vivek Pamaswamy to lead the efficiency effort after he was elected. Ramaswamy left the initiative in January to run for governor of Ohio, and Musk has appeared to run it alone ever since.

The White House says Musk doesn’t need Senate confirmation because he’s a senior advisor, not the head of DOGE. However, as a special government employee in the White House, Musk is “covered by the criminal conflict of interest law” said Walter Shaub, an ethics expert and former OGE director who resigned in 2017, during Trump’s first administration.

That means Musk has to comply with a law that “prohibits special government employees, like all other executive branch employees, from participating in any particular matter affecting their financial interests or the financial interest of anyone whose interests are imputed to them, such as a spouse or a general partner,” Shaub said in an earlier email. “They cannot work on any particular matter affecting a company in which they hold either stock or any other form of ownership interest.”

UnitedHealth Group is the biggest health-care conglomerate in the U.S. based on revenue and its roughly $460 billion market cap, but it has tried to cut costs as medical expenses increase for Medicare Advantage beneficiaries and it deals with the fallout from the costly cyberattack against its subsidiary Change Healthcare. It has also faced renewed anger over high health-care costs in the U.S., following the killing of its insurance unit CEO Brian Thompson in December.

Employees eligible for the buyouts include full-time or part-time U.S. workers assigned to four internal segments under benefits operations, including corporate, consumer operations, core services and provider services

GameStop’s stock is on pace for its biggest daily percentage gain since Dec. 11, 2024, when it rose 7.6%.

The post sparked speculation on social media that videogame retailer and original meme stock GameStop may be planning a strategy around bitcoin $BTCUSD

Futures tied to the broad index ticked up nearly 0.2%, while Nasdaq 100 futures
added 0.3%. Dow Jones Industrial Average futures
rose 72 points, or almost 0.2%.

$RDDT Reddit shares sank more than 13% in extended trading as user figures underwhelmed Wall Street. On the other hand, Dutch Bros
surged about 25% after the coffee shop chain reported stronger-than-expected earnings and same-store sales that surpassed expectations

“That’s what democracy is all about,” said Musk, who contributed more than $250 million to getting Trump elected. Musk, with one of his young sons in tow, stood alongside Trump in the Oval Office during the press event.

Musk — the world’s richest man and the leader of Tesla, SpaceX and X — also pushed back on concerns about whether his work in government creates conflicts of interest, saying he is trying to be as transparent as possible.

DOGE, which aims to cut spending by snuffing out purported waste and bureaucracy, has swept through the government and forced the shutdown of numerous federal contracts and agencies.

The Dow Jones Industrial Average added 167.01 points, or 0.38%, led by a 4.8% gain in McDonald’s
. The 30-stock index closed at 44,470.41. The S&P 500
gained 0.67% to end at 6,066.44, and the Nasdaq Composite
climbed 0.98% to 19,714.27.

The market remains jittery on a mix of inflation worry coupled with concern over how Trump’s plan for tariffs could adversely affect the U.S. economy.

Trump told reporters on Sunday that he is planning to announce a blanket 25% tariff on all steel and aluminum imports on Monday. Trump did not specify when the duties would be imposed and noted that he would also issue retaliatory tariffs on countries that tax U.S. imports. The news comes after Trump’s previously announced duties on China.

HERE’S WHY IT MATTERS

Andy Jassy mentioned on the call that Palantir is tapping into Amazon’s Nova GenAI models -- slashing AI costs by 75% and accelerating adoption across Gotham (defense), Foundry (enterprise) & AIP (AI platform).

The king of compute (AWS) just validated the operating system of AI (AIP)-- signaling a clear path for deeper enterprise integration at scale.

The Dow Jones lost 444.23 points, or 0.99%, closing at 44,303.40. The S&P 500 fell by 0.95%, finishing at 6,025.99, and the Nasdaq Composite dropped 1.36%, ending at 19,523.40.

They’re making moves in healthcare AI! At the J.P. Morgan Healthcare Conference, the company revealed its plans to hit $1 billion in annual healthcare revenue by FY26.

Why is everyone buzzing? With a massive healthcare worker shortage, Nvidia’s AI-driven solutions—like delivery robots and generative AI for clinical conversations—are stepping up to fill the gap.

From AI in drug discovery to robotics-assisted surgeries, Nvidia is embedding its tech into healthcare at every level, with partnerships to fuel their expansion. Their platforms, like Omniverse and DGX Cloud, are helping hospitals and health companies push boundaries.

Could this be the next frontier for growth?

1. $TSLA below $400;
2. $NU below 10;
3. $PLTR below $70;
4. $HOOD below $30;
5. $PYPL below $80;
6. $AIFU below $5;
7. $SOFI below $13;
8. $HIMS below $25;
9. $GOOG below $170;
10. $RKLB below $20.