To The Moon

As Nvidia's earnings report approaches, U.S. tech stocks continue to decline.

🇺🇸 S&P 500 Index: -0.49% 📉

🇺🇸 Nasdaq: -1.21% 📉

🇪🇺 STOXX 600 Index: -0.08% 📉

🇯🇵 Nikkei 225 Index: Market Closed

🇭🇰 Hang Seng Index: -0.58% 📉

🇨🇳 CSI 300 Index: -0.22% 📉

🇸🇬 Straits Times Index: -0.06% 📉

The U.S. stock market weakened, with the S&P 500 and Nasdaq Composite down 0.5% and 1.2%, respectively. Nvidia $NVIDIA Corp(NVDA)$ fell 3%, dragging down semiconductor-related stocks as investors focus on whether its earnings will further confirm AI computing demand prospects.

Eurozone final CPI rose to 2.5% year-over-year, exceeding expectations and last month's 2.4%, while core CPI remained unchanged at 2.7% year-over-year for the fifth consecutive month.

Asia-Pacific markets declined, with Hong Kong's Hang Seng Index and China's CSI 300 down 0.6% and 0.2%, respectively. Profit-taking followed strong tech earnings, while risk sentiment remained moderate as markets digested the potential impact of U.S. tariffs.

Upcoming Events

Tuesday: U.S. Consumer Confidence Index and S&P/Case-Shiller Home Price Index (YoY), key indicators for consumer sentiment and housing market trends.

Wednesday: U.S. New Home Sales (MoM and total sales) and Crude Oil Inventory data, impacting economic growth and energy demand outlook.

Thursday: U.S. Durable Goods Orders (MoM), GDP Growth Rate (preliminary, QoQ), and Unemployment Claims. The Eurozone will update its Economic Sentiment Index.

Friday: Japan will release Retail Sales (YoY) and Industrial Production (preliminary MoM), while the U.S. will publish the Core PCE Price Index (MoM), a key inflation indicator for the Federal Reserve.

Key Events Today

1. Trump stated that tariffs on Canadian and Mexican imports "will be implemented as scheduled" after their temporary delay expires next week. He claimed the U.S. has been taken advantage of in trade agreements and reaffirmed his commitment to reciprocal tariffs as part of his broader trade policy.

2. As part of Trump's "maximum pressure" campaign on Iran, the U.S. imposed new sanctions on more than 30 individuals, entities, and oil tankers in China, Hong Kong, and India. The sanctioned entities allegedly funded militant groups, including Hong Kong-based Petronix Energy Trading Ltd., which was involved in purchasing Iranian oil.

3. Putin supported Trump's proposal for the U.S., Russia, and China to cut their defense budgets by 50%. He stated that Russia is willing to reach an agreement with the U.S. but cannot speak for China. He also acknowledged that Russia's military spending surge since 2022 has fueled economic growth and inflation.

4. Apple $Apple(AAPL)$ announced plans to open a 250,000-square-foot AI server manufacturing facility in Houston by 2026. This is part of a $500 billion U.S. investment over the next four years, which also includes hiring around 20,000 employees nationwide to support its expansion.

5. Domino's Pizza $Domino's Pizza(DPZ)$  reported weaker-than-expected U.S. same-store sales, causing its stock to drop 5%. The reported growth was 0.4%, missing the 1.6% forecast. However, international sales grew by a strong 2.7%. The company warned that the fast-food industry will continue to face pressure in 2025 and hinted at signs of weakening consumer spending. Investors are watching a potential deal with DoorDash to expand its customer base.

Key Takeaways

U.S. stocks remain under pressure due to tariff concerns and bearish sentiment toward major tech stocks. Meanwhile, the dollar weakened, and demand for safe-haven assets like U.S. Treasury bonds and gold strengthened. Market sentiment improved slightly after Trump stated that the G7 is committed to ending the Russia-Ukraine war and engaging in "deep discussions" with Putin, leading to a partial recovery on Wall Street.

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