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Trump's Chip Export Restrictions, Nvidia 'Drops' Over 6% After-hours

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  Nvidia's stock fell over 6% in after-hours trading on Tuesday following the U.S. government's implementation of new export restrictions on its H20 AI chips to China. The company announced it would incur a $5.5 billion charge in its fiscal first quarter due to unsellable inventory and canceled orders resulting from these restrictions .​ The H20 chip, designed to comply with prior export controls, was the most advanced AI processor Nvidia could sell to China. However, the new mandate requires an export license for these chips, which analysts believe will not be granted, effectively ending Nvidia's ability to sell the H20 chip in China .​ In response to the export restrictions, Nvidia plans to invest up to $500 billion in U.S.-based AI infrastructure, including the construction of AI supercomputers in Texas in partnership with Taiwanese contract manufacturers .​ Despite these efforts, the immediate financial impact is significant, with the $5.5 billion charge reflect...

Black Monday or Face Ripping Rally?

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 Right now, markets are on a razor’s edge — and whether we get a Black Monday-style crash or a face-ripping rally depends on a few big wildcards in play: 📉 Black Monday Case: Markets could tank hard if any of these spiral: Tariff Fallout: Trump's sweeping tariffs are hitting real-time now. Global retaliation (China, EU, etc.) is escalating. If corporate margins and consumer prices get squeezed, recession fears intensify. Inflation Flare-Up: If new tariffs reignite inflation, the Fed may stay hawkish longer — bad for risk assets. Recession Risk: RBC just warned the S&P 500 could drop to 4,200–4,500 in a full-blown recession scenario. Sentiment Crash: The market’s been on edge — a sharp move down could trigger a snowball of selling (momentum funds, stop-losses, margin calls). 🚀 Face-Ripping Rally Case: But there's fuel for a huge upside move too: Oversold Conditions: The S&P just had its worst slump since 2020. Technicals could trigger a b...

US starts collecting Trump’s 10% tariff, smashing global trade norms

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  On April 5, 2025, the United States initiated the collection of a universal 10% tariff on imports from numerous countries, marking a significant departure from established global trade practices. This action follows President Donald Trump's declaration of a national emergency to address what he termed a "large and persistent U.S. trade deficit," invoking the International Emergency Economic Powers Act (IEEPA) to implement these tariffs. ​ Key Details: Baseline Tariff: A 10% tariff now applies universally to imports from many countries, excluding Canada and Mexico, which are largely exempt under the United States-Mexico-Canada Agreement (USMCA). ​ Higher Tariffs on Specific Countries: Beginning April 9, 2025, elevated tariffs will target 57 major trading partners. For instance, the European Union faces a 20% tariff, China a total of 54%, Japan 24%, and Vietnam 46%. ​ Global Reactions: China's Response: China swiftly imposed retaliatory measures, ...