This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
The “Trump Bump,” which occurred when equities and other assets, including cryptocurrencies, surged following Donald Trump’s election and inauguration, seems to have leveled down.
This is especially evident in Tesla’s stock, which fell sharply on Tuesday, wiping out the majority of a postelection surge fuelled by CEO Elon Musk’s ties to Trump. Some people are worried about Tesla’s performance, while others are more focused on Musk, who spends a lot of time in Washington, D.C.
Additionally, consumers are becoming increasingly concerned about how Trump’s tariffs would affect the economy. A U.S. Conference Board survey found pessimism over job availability, company circumstances, and future income. Additionally, there were elevated forecasts for inflation in 2025.
What To Note Today
Nasdaq to be negative in 2025
Tuesday has seen the S&P 500 drop 0.47% for the fourth day in a row. With a 1.35 percent decline, the Nasdaq Composite is now down for the year. Nvidia’s earnings release on Wednesday caused the index to decline. On the other hand, the Dow Jones Industrial Average increased by 0.37%. The Stoxx 600 index for Europe increased by 0.15%. On Wednesday, Asia-Pacific markets saw uneven trading. Hong Kong’s Hang Seng Index surged over 3%, while Japan’s Nikkei 225 fell about 0.3%. Following Tesla’s Tuesday decline, shares of Chinese electric vehicle manufacturers listed in Hong Kong increased.Â
Low confidence among consumers
In February, the U.S. Conference Board’s Consumer Confidence Index fell seven points to 98.3, below the Dow Jones projection of 102.3. This was the biggest monthly decline since August 2021 and the lowest reading since June 2024. Expectations for consumers’ 12-month inflation increased to 6% from 5.2% the previous month, significantly over the Federal Reserve’s target of 2%.
Tesla’s Trump gains are mostly lost
Tesla’s market capitalization fell below $1 trillion, its lowest level since Nov. 7, two days after U.S. President Donald Trump won the U.S. presidential election, as the company’s shares fell 8.4%. According to one analyst, Tesla’s price decline foreshadows a time when the multinational company will have to operate in a nationalist environment.
Super Micro Computer does not want to be delisted
Following the filing of Super Micro Computer’s fiscal 2024 financial results, which came just in time to keep the business from being delisted from the Nasdaq, shares of the company surged up to 23% in extended trading. The company’s revised and audited financials show that Super Micro’s sales in fiscal 2024 more than doubled to $14.99 billion. Ernst & Young, the company’s auditor, left last year due to governance concerns after it postponed its annual report.
Happy time cheers
The largest brewer in the world, AB InBev, reported a 3.4% growth in fourth-quarter revenue to $14.84 billion on Wednesday, easily surpassing LSEG analysts’ 2.9% decrease to $14.05 billion prediction. Total volumes decreased 1.4%, despite full-year sales increasing a better-than-expected 2.7% to $59.77 billion. Budweiser, Corona, and Stella Artois are among the company’s brands.
“Flesh wound” in the marketplace
In recent days, stocks have declined. However, that might be a “flesh wound,” according to Fundstrat Global’s chief of research, Tom Lee. That is to say, among two other market-moving events this week, this may be a brief decline from which markets recover, helped by investors purchasing the dip. One well-known market bull is Lee.
Bottom LineÂ
The “Trump Bump,” which saw equities and assets like cryptocurrencies soar after Trump’s election, appears to have cooled. Once boosted by Musk’s ties to Trump, Tesla’s stock fell sharply on Tuesday, erasing most of its postelection gains. Concerns about Tesla’s future persist, with some attributing its struggles to Musk’s political engagement. Meanwhile, fears over Trump’s tariffs are growing, as a U.S. Conference Board survey highlights increasing pessimism about jobs, business conditions, and income. Inflation expectations for 2025 also remain high.
On Wall Street, the S&P 500 dropped for the fourth straight session, slipping 0.47%, while the Nasdaq fell 1.35%, weighed down by Nvidia’s upcoming earnings report. The Dow, however, managed a 0.37% gain. In Europe, the Stoxx 600 inched up 0.15%, while Asia-Pacific markets showed mixed trends—Hong Kong’s Hang Seng soared over 3%, while Japan’s Nikkei dipped 0.3%. Tesla’s decline also triggered a rally among Chinese EV stocks in Hong Kong.
