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.
When Donald Trump secured victory in the 2024 U.S. presidential election last November, market sentiment was largely optimistic.
Expectations of deregulation and tax cuts fueled consumer confidence, while easing inflation raised hopes for multiple Federal Reserve rate cuts, driving stock market gains.
However, the tide has since turned. Trump’s shifting stance on tariffs—alternating between imposing and retracting them—has thrown markets into uncertainty.
Investors are increasingly wary of how these retaliatory tariffs could impact an already fragile U.S. economy, with early signs of weakness emerging.
The looming threat of a recession hangs over Wall Street like the sword of Damocles, leaving one key question: If a downturn is inevitable, how soon will it strike?
What To Note Today
Markets React to Tariff Uncertainty as Dow Posts Consecutive Losses
U.S. stocks closed lower for the second straight day on Thursday, weighed down by investor concerns over new tariff announcements from President Donald Trump. The Dow Jones Industrial Average dipped 0.37%, while the S&P 500 and Nasdaq Composite declined 0.33% and 0.53%, respectively.
The latest market drop followed Trump’s announcement of a 25% tariff on all foreign-made vehicles, set to take effect on April 2. Shares of major automakers took a hit, with General Motors sliding over 7% and Ford dropping nearly 4%. European markets also felt the pressure, with the Stoxx 600 slipping 0.44%.
Tesla Emerges as a Winner Amid Tariff Chaos
While most automakers suffered losses, Tesla appears to be a key beneficiary of the new trade policy. Analysts predict that Elon Musk’s EV company will gain a competitive edge due to its domestic production. Bernstein analyst Daniel Roeska mentioned the situation in a note to clients: “Tesla wins, Detroit bleeds.”
Trump Threatens Heavier Tariffs on EU and Canada
In a new escalation of trade tensions, Trump warned of imposing even steeper tariffs on the European Union and Canada if they align against U.S. trade measures. “If the European Union works with Canada to harm the USA economically, massive tariffs—far larger than currently planned—will be imposed,” Trump wrote on Truth Social.
CoreWeave Slashes IPO Price Amid Market Volatility
Cloud computing firm CoreWeave adjusted its IPO pricing downward, setting shares at $40 each and raising $1.5 billion, making it the largest U.S. tech IPO since 2021. The company, which specializes in providing Nvidia-powered AI computing resources, initially planned to sell shares between $47 and $55. Despite the reduced pricing, Nvidia reportedly placed a $250 million anchor order at $40 per share.
Ubisoft Partners with Tencent for New Gaming Subsidiary
French gaming giant Ubisoft has partnered with China’s Tencent to create a new subsidiary dedicated to its blockbuster franchises, including Assassin’s Creed, Far Cry, and Rainbow Six. Tencent is investing €1.16 billion ($1.25 billion) into the venture to expand its global gaming footprint.
Nvidia Stock Presents ‘Attractive Opportunity,’ Says BofA
Following a recent pullback, Bank of America calls Nvidia a prime buying opportunity. With a Buy rating and a $200 price target, BofA sees a potential 76% upside for the AI chip leader. The firm believes Nvidia’s long-term prospects remain strong despite short-term volatility.
OpenAI’s ChatGPT Overwhelms GPUs with Viral Image Feature
OpenAI CEO Sam Altman revealed that ChatGPT’s newly launched image-generation AI has caused an unexpected surge in demand, pushing the company’s GPU capacity to its limits. “Our GPUs are melting,” Altman posted on X, adding that OpenAI will temporarily restrict usage while scaling infrastructure to accommodate demand.
In Summary
U.S. stock markets continued their downward trend as investors reacted to President Trump’s latest tariff measures. The Dow, S&P 500, and Nasdaq all saw declines, with major automakers like General Motors and Ford suffering losses following the announcement of a 25% tariff on foreign-made vehicles. European markets also faced pressure, reflecting broader concerns over escalating trade tensions.
Tesla emerged as a key winner amid the tariff turmoil, as analysts predict the company will benefit from its domestic production advantage. Meanwhile, Trump threatened even steeper tariffs against the EU and Canada if they collaborate against U.S. trade policies, fueling further uncertainty in global markets.
CoreWeave scaled down its IPO pricing amid market volatility, while Ubisoft announced a new Tencent-backed gaming subsidiary. Bank of America labeled Nvidia stock a prime buying opportunity, citing strong long-term prospects. Meanwhile, OpenAI’s viral image-generation feature pushed its GPU servers to the limit, forcing temporary usage restrictions.
