Last Week's Recap
The US Market - Another selloff week
The U.S. stock market experienced another turbulent week as trade policies and economic data fueled volatility. The major indexes rallied on Monday but struggled to maintain momentum, ultimately succumbing to selling pressure.
On Friday, stocks sold off sharply after the University of Michigan’s final read on consumer sentiment for March reflected the highest long-term inflation expectations since 1993.
This week the S&P 500 lost 1.53%, while the 30-stock Dow shed 0.96%. The Nasdaq declined by 2.59%. The Nasdaq is now on track for an over 8% monthly decline, potentially marking its worst performance since December 2022.
President Trump announced a 25% tariff on all foreign-made cars earlier this week, a decision that hurt auto stocks and raised concerns of an economic slowdown.
Moreover, the Fed's primary inflation gauge, the core PCE price index, ticked up to 2.8% in February as consumer spending bounced a bit less than expected after falling in January.
The US Sectors & Stocks - Auto tariffs hurt auto industry
Several big tech and semiconductor stocks tumbled, dragging down the S&P 500 technology and communication services sectors. Alphabet (GOOGL) and Nvidia (NVDA) fell over 6%, while Meta (META) and Microsoft (MSFT) lost around 3%.
AI hardware and semiconductor stocks plunged on fears that the data center boom may be overheating. Broadcom (AVGO) dropped 12%, while Micron Technology (MU) and Intel (INTC) fell over 6%. Alibaba Chairman Joe Tsai warned of an AI data center bubble, and reports surfaced that Microsoft is scaling back data center leases in the U.S. and Europe.
President Trump's 25% auto tariffs could cause significant disruptions for the auto industry, with prices expected to rise as much as $10,000. General Motors (GM), Stellantis (STLA), Volkswagen (VWAGY), Toyota (TM), and Honda (HMC) all slid on the news.
CoreWeave (CRWV), an Nvidia-backed cloud computing firm, debuted on Nasdaq at $39 per share, below its IPO price of $40 and well under its initial $47-$55 range. Despite a downsized offering, it still raised $1.5 billion, the biggest U.S. tech IPO since 2021—though the weak pricing signals investor caution on AI infrastructure stocks.
AppLovin (APP) plummeted 20% Thursday, sinking 13% for the week, after short-seller Muddy Waters disclosed a bearish position. In late February, short-sellers Fuzzy Panda Research and Culper Research also issued negative reports on the company.
Lululemon (LULU) plunged 14% on Friday, despite better-than-expected Q4 and FY2024 earnings. The activewear giant issued weak 2025 guidance, citing inflation pressures and softening U.S. consumer spending, weighing on retail sentiment.
Hong Kong Market - HSI lost a three straight week
The Hong Kong stock market continued to decline for the third week, with the Hang Seng Index (HSI) slipping roughly 1%. Investors turned to profit-taking, reflecting cautious market sentiment amid tariffs' impact.
CK Hutchison (0001.HK) will not sign a deal next week to sell its two port operations near the Panama Canal to a BlackRock-led group, two people with direct knowledge of the matter said. China's market regulator said it will carry out an antitrust review on the Panama port deal in accordance with a law to protect fair competition and safeguard the public interest.
Xiaomi Group (1810.HK) said on Tuesday it had raised $5.5 billion in an upsized share sale as the company pushes forward with its ambitious electric vehicle manufacturing plans. The company sold 800 million shares at HK$53.25 each, it said in a statement to the Hong Kong Stock Exchange.
Pop Mart (9992.HK) ended 2024 with record breaking results, as its push into international markets and emphasis on IP development drove revenue to RMB 13.04 billion (USD 1.8 billion), reflecting a 106.9% increase year-on-year (YoY). Adjusted net profit climbed 185.9% to RMB 3.4 billion (USD 476 million), underscoring the company’s ability to balance growth with operational efficiency.
Singapore Market - STI hit record as inflation cools
Singapore shares climbed 1.2% this week, pushing the Straits Times Index (STI) past the 4,000 mark for the first time on Friday, as cooling inflation bolstered investor sentiment.
Singapore’s Consumer Price Index (CPI) rose just 0.9% year over year in February, the slowest pace in four years and slightly below the 1% median estimate. Core inflation, which excludes accommodation and private transport, eased to 0.6%, down from 0.8% in January and lower than the 0.7% expected in a Reuters poll.
Meanwhile, the Import Price Index declined 3.3% year over year in February, extending January’s 2.2% drop, signaling continued disinflationary pressures in trade.
Australian Market - ASX200 rallied 0.6%
Despite ongoing market volatility and a pullback in technology stocks, the Australian share market ended the week on a positive note, with the ASX 200 rising 0.6% for the week—marking its second consecutive weekly gain in 2024.
Gold miners led the charge after the gold price hit a fresh record high of $3,077.59 per ounce. Ramelius Resources (ASX: RMS) jumped an impressive 12% and Strickland Metals (ASX: STK) jumped 13% , while De Grey Mining (ASX: DEG) rose 3.3%.
The Week Ahead
Macro Factors - Trump's "Liberation Day", Jobs Report
This week, Trump's tariffs will take center stage as the president's April 2 "Liberation Day" looms on Wednesday. The president is expected to unveil reciprocal tariffs on Wednesday, but Wall Street remains uncertain whether this marks the start of negotiations or the final policy stance. Markets will closely watch for specific details on tariff severity and potential economic fallout.
Goldman's recent survey of market participants shows investors likely expect a 9-percentage-point reciprocal tariff rate, per chief political economist Alec Phillips. But Goldman's team believes the initially proposed rate will be higher, potentially closer to double what market participants expect.
Friday’s jobs report will be another major event, offering the first comprehensive look at employment trends amid DOGE-related layoffs and tariff-driven uncertainty. Economists project a 138,000 increase in nonfarm payrolls—a slowdown from February’s 151,000 gain—while the unemployment rate is expected to hold steady at 4.1%.
Morgan Stanley chief US economist Michael Gapen wrote in a note to clients previewing the event, "We think it would take a lot of employment growth to alleviate fears of a sharper slowdown in the economy, while a mildly below-consensus print could fuel those concerns."
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