Breakfast News: Trump Defends Tariffs
Breakfast News: Trump Defends Tariffs
March 5, 2025
Tuesday's Markets |
|---|
| S&P 500 5,778 (-1.22%) |
| Nasdaq 18,285 (-0.35%) |
| Dow 42,521 (-1.55%) |
| Bitcoin $87,298 (+1.3%) |
Source: Image created by JesterAI.
1. President Acknowledges Economic Pain
In his address to a joint session of Congress last night, President Trump acknowledged some likely economic discomfort for Americans as a result of tariffs, but only sees it as a short-term problem, saying "Tariffs are about making America rich again ... and it will happen rather quickly. There'll be a little disturbance, but we're OK with that. It won't be much."
- The S&P 500 closed 5.6% down from last month's all-time high: The stock market has suffered its biggest two-day slump since December, giving up all its gains since November's election, as the sweeping tariffs have heightened worries about the U.S. economy.
- Meeting Canada and Mexico halfway?: Commerce Secretary Howard Lutnick said Trump might offer a way to reduce tariffs on the two neighbors as early as today. Index futures rose in after-market trading in response.
2. Chip Maker Pain, Oil and Gas Gain
President Trump urged Congress to kill 2022's law to give $52.7 billion in subsidies to semiconductor manufacturers. Government grants under the Biden administration persuaded global chip makers to locate factories in the U.S.
- "CHIPS Act is a horrible, horrible thing": The president said the money spent should be used to reduce debt. New York Governor Kathy Hochul countered, saying it's the reason Micron (MU 0.73%) "is bringing $100 billion and 50,000 jobs to Central New York."
- "More liquid gold under our feet than any nation on earth": Trump pledged to boost domestic energy output, while also promising to expand minerals and rare earth production.
3. "Please Don't Break Up Google"
A Reuters report claims Alphabet's (GOOG 2.34%) Google met with Trump officials last week, to urge the government to rethink its approach to two antitrust cases being pursued by the Department of Justice.
- Targeting market dominance: Google fears it might have to sell its Chrome Web browser, and end agreements with companies including Apple (AAPL -0.88%) regarding search engine defaults.
- Bad for the U.S.: A Google spokesperson claimed these remedies "would harm the American economy and national security."
4. Qualcomm Ups the Modem Game
Qualcomm (QCOM 0.55%) has announced its newest high-end modem, the X85. The company says it will provide significantly better performance than Apple's new modem, the C1, launched last month with the iPhone 16e.
- "It's the first modem that has so much AI": CEO Cristiano Amon told CNBC that AI demands will make modems "more important than they have ever been."
- Apple independence: Apple's in-house modem development aims to reduce its reliance on other developers, and it could stop using Qualcomm modems by 2027.
5. Next Up: Fourth-Quarter Earnings
Marvell Technology (MRVL 2.91%) will post fourth-quarter results after today's closing bell. In Q3, the semiconductor designer beat revenue and earnings estimates. Data center revenue soared 98% from the previous year. We should look for more of the same this time, spurred by rising AI demand. Restructuring and cost initiatives could be a concern.
- "2025: The year to become Quantum-Ready": A Microsoft (MSFT 0.03%) blog post in January gave quantum researcher Rigetti Computing (RGTI 2.08%) a boost. A Q4 update is due after today's market close, as the company could be a benefactor from Amazon's (AMZN -0.59%) new quantum chip.
- Up 595% in five years: Abercrombie & Fitch (ANF -0.62%) will post a Q4 update before the opening bell, after beating earnings expectations in the previous four quarters. As competitors in the clothing business report upbeat results, analysts expect a 19% year-over-year earnings rise, with revenue up 4.7%.
6. Foolish Fun
Abercrombie & Fitch has seen a dramatic turnaround in the last couple of years, having kept faith with CEO Fran Horowitz. Can you name a public company going through a sticky period whose leadership you trust to turn fortunes around? Discuss why with friends and family, or become a member to hear what your fellow Fools are saying.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10