Norway’s sovereign wealth fund, the largest in the world, has reported a first-quarter loss of $40 billion, largely due to a downturn in the technology sector.
The fund, managed by Norges Bank Investment Management (NBIM), saw its value drop to 18.53 trillion kroner by the end of March 2025, with 70% of its investments in equities, which recorded a 1.6% loss.
CEO Nicolai Tangen attributed the decline to significant market fluctuations, particularly in tech stocks, which have faced recent sell-offs. The fund holds major stakes in Meta, Alphabet, Amazon, Nvidia, Tesla, and Microsoft, all of which have experienced volatility.
Additionally, currency movements played a role, with the Norwegian krone strengthening against key currencies, contributing to an 879 billion kroner (around $84.5 billion) decrease in the fund’s value.
Despite the losses, NBIM maintains a diversified portfolio, with fixed-income investments returning 1.6% and unlisted real estate yielding 2.4% gains.
British fintech giant Revolut has achieved a major financial milestone, reporting £1.1 billion ($1.5 billion) in net profit for 2024, marking a 149% increase from the previous year.
The company’s revenue also saw significant growth, surging 72% to £3.1 billion, driven by a combination of subscription services, wealth management, and interest income.
One of the standout contributors to this success was Revolut’s wealth unit, which includes stock trading, boasting a 298% jump in revenue. The firm’s loan book also expanded 86% to £979 million, further strengthening its financial position.
This growth comes at a pivotal moment for Revolut, as it prepares to launch its UK bank later this year after securing a banking licence in 2024.
Once fully operational, the bank will enable Revolut to offer traditional financial services, including loans, overdrafts, and mortgages, enhancing its appeal as a primary banking option.
Revolut’s UK CEO has emphasised that securing full banking authorisation is a crucial step toward global expansion and an eventual IPO.
As the company continues to evolve, it faces stiff competition from established players such as Monzo and Starling, both of whom secured banking licences years earlier.
Revolut’s remarkable financial performance signals its ambitions to become a dominant force in banking – a fintech powerhouse redefining modern finance.
About Revolut
Revolut is a British fintech company that provides digital banking services, including currency exchange, stock trading, cryptocurrency transactions, and personal finance management.
The name ‘Revolut’ suggests a revolution in financial services, aiming to simplify and modernise banking through technology.
Founded in 2015 by Nikolay Storonsky and Vlad Yatsenko, Revolut started as a platform offering fee-free foreign exchange and has since expanded into a global financial super app.
It operates in multiple countries and serves millions of customers, offering both free and subscription-based banking services.
Tesla has been making headlines with a series of major developments, from financial setbacks to strategic shifts by CEO Elon Musk.
The electric vehicle giant recently reported a 20% drop in automotive revenue, a significant decline that has raised concerns among investors.
Meanwhile, Musk has announced that he will bespending much less time on the Department of Government Efficiency (DOGE), a move that could signal a renewed focus on Tesla.
Additionally, Tesla’s ambitious Optimus humanoid robot project has hit a roadblock due to China’s restrictions on rare earth materials, further complicating the company’s future plans.
Tesla’s Revenue Decline
Tesla’s first-quarter earnings report revealed a 20% drop in automotive revenue, with total revenue sliding 9% year-on-year.
The company attributed the decline to factory retooling for a refreshed Model Y, lower average selling prices, and increased sales incentives.
Net income plummeted 71%, reflecting the broader challenges Tesla faces in a competitive EV market.
Tesla 3 month share price chart 2025
The company has refrained from promising growth this year, stating that it will revisit its 2025 guidance in its Q2 update.
Musk’s Shift Away from DOGE
Elon Musk’s involvement in the Department of Government Efficiency (DOGE) has been a controversial topic, with critics arguing that his political commitments have distracted him from Tesla’s operations.
However, Musk has now confirmed that his time allocation to DOGE will drop significantly, allowing him to focus more on Tesla.
He stated that he will likely spend only one or two days per week on government matters, a shift that could reassure investors concerned about his divided attention.
Reports of his popularity in recent U.S. polls suggest he is out of favour with the American people and is now low in people’s opinion around the world because of his contentious DOGE role.
Optimus Robots and China’s Rare Earth Restrictions
Tesla’s Optimus humanoid robots, which Musk has touted as a revolutionary step toward automation, have encountered a major obstacle due to China’s export restrictions on rare earth materials.
The restrictions, imposed as part of an escalating trade war, have disrupted Tesla’s supply chain, particularly affecting the rare earth magnets used in Optimus actuators.
Musk has expressed hope that Tesla will secure an export licence, but the uncertainty surrounding the restrictions could delay production.
Looking Ahead
Tesla is navigating a challenging landscape, balancing financial setbacks, Musk’s shifting priorities, and geopolitical hurdles.
While the company remains a leader in EV innovation, its ability to adapt to market pressures and geopolitical challenges will be crucial in determining its future success.
Investors and industry watchers will be closely monitoring Tesla’s next moves as it works to regain momentum.
Gold extended a blistering rally to rise above $3,500 an ounce for the first time, as concern that President Donald Trump could fire Federal Reserve Chair Jerome Powell triggered a flight from U.S. stocks, bonds and the dollar.
This public rebuke of JeromePowell comes on top of geopolitical risks, trade tensions and concerns over economic stability – all enflamed by Trump’s tariff onslaught.
Gold hits new all-time high!
Gold has reached an unprecedented milestone, soaring to $3,500 per ounce for the first time, as political and economic uncertainty surrounding President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell shakes global markets.
Investors have flocked to gold as a safe-haven asset, seeking refuge from the volatility triggered by Trump’s public demands for immediate interest rate cuts and threats to dismiss Powell.
Gold’s rapid ascent has been supported by a combination of trade tensions, tariff uncertainties, and geopolitical risks. Its ascent this year suggests that markets have less confidence in the U.S. than ever.
Dollar plummets as gold hits new all-time high!
The U.S. dollar has plummeted to its lowest level since 2023, further fueling gold’s meteoric rise.
Concerns over the Federal Reserve’s independence have eroded confidence in U.S. assets, prompting a flight to bullion-backed exchange-traded funds and central-bank purchases.
Market analysts are divided on whether gold’s rally will sustain its momentum. While some predict further gains, citing the metal’s enduring appeal as a hedge against economic instability, others caution that the recent surge may lead to a temporary pullback.
Regardless, gold’s historic climb underscores its status as a reliable store of value in times of turmoil, solidifying its position as the ultimate safe-haven asset.
Gold has seen a significant rise in 2025
On 1st January 2025, gold was priced at $2,623 per ounce. As of 21st April, 2025, gold has surged to $3,373.70 per ounce.
This marks an increase of $750.70 per ounce, or approximately 29% in just a few months.
One-year gold chart
Gold one-year chart
In April 2024, gold was priced at approximately $2,284 per ounce. As of April 2025, gold has surged to $3,373.70 per ounce. This marks an increase of $1,089.70 per ounce, or roughly 48% in just one year.
President Donald Trump’s recent criticism of Federal Reserve Chair Jerome Powell has sent shockwaves through the financial markets, reigniting concerns about the central bank’s independence.
On Monday 21st April 2025, Trump took to social media to publicly call Powell a ‘major loser’ and demanded immediate interest rate cuts, warning of an economic slowdown if his demands were not met.
This public rebuke, coupled with Trump’s earlier threats to terminate Powell, has unsettled investors and triggered another sharp sell-off in U.S. stocks.
The Dow Jones Industrial Average plunged nearly 1,000 points, or 2.48%, closing at 38170. The S&P 500 and Nasdaq Composite also suffered significant losses, falling 2.36% and 2.55%.
Dow Jones one-year chart
Dow Jones one-year chart
Trump continues to create uncertainty
Analysts attribute this market turmoil to fears that Trump’s rhetoric could undermine the Federal Reserve’s ability to operate independently, a cornerstone of its credibility.
‘Magnificent Seven’ tech companies dragged the major indexes lower, with Tesla and Nvidia respectively losing 5.8% and more than 4%. Amazon shed 3%, and Meta Platforms suffered losses too.
Tesla one-year chart
Tesla one-year chart
Adding to the uncertainty, Trump’s tariff policies have already strained investor confidence. The combination of trade tensions and doubts about the Fed’s autonomy has led to a flight from U.S. assets.
The dollar hit a three-year low, while gold prices soared to record highs above $3,400 per ounce as investors sought safe-haven assets.
Market experts warn that prolonged uncertainty could have far-reaching implications. ‘The market is okay with rates coming down,’ reportedly said Thierry Wizman, a global currency strategist. ‘What the market is not okay with is having the president or politicians tell the Fed that the rates need to come down’.
As Trump’s public rebuttal of Powell continues, investors observe the potential implications. The stakes are high, not just for the U.S. economy but for global markets that rely on the stability of American financial institutions.
Investors are left grappling with a volatile landscape, where political pressures and economic policies collide.
The European Central Bank (ECB) announced its seventh consecutive interest rate cut on Thursday 17th April 2025, lowering the rate by 0.25% to 2.25%.
This decision aims to counter economic growth concerns fueled by global trade tensions, particularly the impact of tariffs imposed by the United States.
The ECB’s move is expected to make borrowing more affordable, supporting consumer spending and business investment.
Inflation in the eurozone has fallen to 2.2%, close to the ECB’s target, shifting the focus to growth worries.
The eurozone economy grew by a modest 0.2% in the last quarter of 2024, highlighting the need for measures to stimulate activity.
The ECB’s decision reflects the challenges posed by trade uncertainties and the potential impact of tariffs on European industries.
Russia’s exemption from recent U.S. tariffs has sparked curiosity and debate. While many nations face new trade duties, Russia remains notably absent from the list
This decision stems from a combination of geopolitical, economic, and strategic factors.
One key reason is the existing sanctions imposed on Russia by several countries, including the United States, following its invasion of Ukraine in 2022.
These sanctions have already significantly curtailed trade between Russia and its global partners, rendering additional tariffs less impactful.
For instance, U.S.-Russia trade has dwindled to a fraction of its pre-war levels, focusing primarily on strategic goods like fertilisers and chemicals.
Another factor is the ongoing diplomatic efforts to address the conflict in Ukraine. Some analysts suggest that exempting Russia from tariffs could be a strategic move to maintain a channel for negotiation and potential cooperation.
This approach might aim to encourage Russia’s participation in peace talks or other diplomatic initiatives.
Additionally, the structure of Russia’s exports plays a role. Certain goods, such as fertilisers, are critical to global supply chains, and imposing tariffs could disrupt markets and harm economies reliant on these imports.
While the decision has drawn criticism, it underscores the complexities of balancing economic policies with geopolitical realities.
The debate continues as the global community navigates these challenging dynamics caused through the imposition of U.S. tariffs.
The stock market experienced another sharp Trump tariff related downturn Wednesday 16th April 2025, driven by a tech-heavy sell-off continuing to rattle investors.
The Nasdaq Composite plunged by 3%, while the Dow Jones Industrial Average shed nearly 700 points, marking one of the most significant declines in recent months.
Concerns over tariffs and inflation were amplified by Federal Reserve Chair Jerome Powell’s remarks about the tariff uncertainty, which highlighted the challenging economic landscape.
Tech stocks bore the brunt of the sell-off, with semiconductor companies like Nvidia and AMD leading the decline. Nvidia’s announcement of a $5.5 billion quarterly charge related to export restrictions on its chips to China added to the sector’s woes.
Powell’s comments on tariffs exacerbated market fears, as he warned of potential stagflation—a scenario where inflation rises while economic growth slows.
This sentiment was echoed across trading floors, with investors grappling with the implications of ongoing trade tensions and restrictive policies.
As the market inches closer to bear territory, the focus remains on navigating these turbulent times.
The sell-off underscores the fragility of investor confidence and the pivotal role of technology in shaping market dynamics
The UK economy displayed unexpected resilience in February 2025, with GDP growing by 0.5%.
This figure has exceeded market expectations and provided a welcome boost to UK economic confidence. The growth was fueled by robust activity in the services and manufacturing sectors, which helped counterbalance ongoing challenges in other areas.
February’s performance marks a recovery from the flat growth seen in January 2025, underscoring the adaptive capacity of businesses and consumers alike.
Adding to the positive momentum, the Consumer Prices Index (CPI) inflation rate eased to 2.6% in March 2025, down from February’s 2.8%.
The decline in inflation reflects a combination of factors, including falling fuel costs and stable food prices, which have alleviated pressure on household budgets.
This marks the lowest inflation level since late 2024 and aligns with the Bank of England’s goal of achieving price stability.
The interplay of stronger-than-expected GDP growth and easing inflation suggests a cautiously optimistic outlook for the UK economy.
While challenges persist, such as global economic uncertainties and lingering effects of Brexit, these latest figures indicate a potential turning point, despite the Chancellors autumn and spring ‘budgets’.
The UK government and market participants will be watching closely to see if this positive trend continues into the coming months.
On Monday 14th April 2025, the stock market experienced a notable mini rally, driven by the tech sector’s resurgence following a weekend announcement of a temporary tariff pause.
Major tech companies like Apple, Nvidia, and Amazon saw significant gains, with Apple shares surging by 7.5%. The Nasdaq Composite, heavily weighted with tech stocks, climbed 1.9%, while the S&P 500 rose 1.5%.
This rally marked a stark contrast to the volatility of the previous week, where tariff uncertainties had sent shockwaves through the market.
The tariff pause, although temporary and restricted to 20%, helped to alleviate immediate concerns about rising costs for consumers and businesses.
Importers were spared from choosing between absorbing higher expenses or passing them on to customers. This relief was particularly impactful for companies reliant on Chinese manufacturing, as the exemptions covered a wide range of tech products.
Market analysts noted that the rally was not just a reaction to the tariff news but also a reflection of the tech sector’s resilience.
Despite facing challenges earlier in the year, tech companies have continued to innovate and adapt, maintaining their position as a driving force in the U.S. and world economies.
However, the rally’s sustainability remains uncertain. The administration’s mixed messages about future tariffs have left investors cautious.
While Monday’s gains were encouraging, the broader market continues to grapple with the unpredictability of trade policies.
Is this a fair ‘take’ on the last weeks tariff turmoil?
President Trump’s tariffs have left a significant mark on global trade and financial markets, creating waves that continue to shape global economic dynamics.
The tariffs, initially aimed at reducing the U.S. trade deficit and protecting domestic industries, triggered a rollercoaster ride for stock markets and strained international relations.
Highs to lows
The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 experienced sharp declines following the announcement of sweeping tariffs. At their lowest points, the Dow fell to 37226, the Nasdaq dropped to 15266, and the S&P 500 sank to 4956.
These figures marked significant losses, with trillions of dollars wiped off the market in just a few days.
The volatility was exacerbated by fears of a global trade war and the uncertainty surrounding the tariffs’ implementation.
Tariff turmoil and 90 day pause
In response to the market turmoil, President Trump announced a 90-day pause on most tariffs, providing temporary relief to investors and businesses. This decision led to a rebound in stock markets, with indices recovering some of their losses.
However, the relief was short-lived, as tensions with China escalated. While tariffs on many trading partners were paused, China’s tariff rate was increased to a staggering 125%.
This move further strained U.S.-China relations and added pressure on industries reliant on Chinese imports.
Tech garners favour
The tech sector, heavily dependent on global supply chains, was among the hardest hit. Tariffs on components like microchips and finished products such as smartphones and computers disrupted production and increased costs.
Companies faced challenges in maintaining profitability and passing on the increased costs to consumers. The eventual reduction and cancellation of some tariffs provided a lifeline to the tech industry, allowing businesses to stabilize operations and reduce prices.
However, the uncertainty surrounding trade policies continued to pose challenges for the sector.
Market turmoil?
Was this the ultimate in market ‘management’ as President Trump posted on his social media platform, Truth Social, that it was a ‘great time to buy’ just hours before announcing the 90-day tariff pause.?
This statement, made at 9:37 am., came shortly before the announcement, which caused stock markets to surge significantly. The timing of his post raised eyebrows and sparked discussions about potential insider trading concerns
China retaliates
China’s response to the tariffs was swift and retaliatory. Beijing imposed its own tariffs on U.S. imports, raising rates to 125%. This retaliation targeted key U.S. industries, including agriculture and technology, further escalating the trade conflict.
The Chinese yuan also hit its lowest level against the dollar since the global financial crisis. These measures highlighted the deepening economic rift between the world’s two largest economies.
The effects of President Trump’s tariffs underscore the complexities of modern trade policies. While intended to protect domestic industries, the tariffs created significant economic disruptions, both domestically and globally.
The stock market volatility, strained international relations, and challenges faced by industries like technology illustrate the far-reaching consequences of such policies.
As the world continues to navigate the aftermath of these tariffs, the importance of balanced and strategic trade policies becomes increasingly evident.
Markets moved up, unsurprisingly, after Trump announced the tech tariff adjustment
Over the weekend, President Trump reportedly made several statements about tariffs on tech products, creating some confusion.
Initially, it was announced that smartphones, computers, and other electronics would be temporarily excluded from the steep tariffs.
However, Trump later clarified that these products were not entirely exempt but had been moved to a different ‘tariff bucket.’ He reportedly stated that they would still face a 20% tariff as part of broader measures targeting Chinese goods.
Trump also hinted at upcoming tariffs on semiconductors and the entire electronics supply chain, emphasising the need for the U.S. to produce more of these components domestically.
President Trump reportedly described this as part of a ‘National Security Tariff Investigation’. These announcements have left tech companies and investors uncertain about the long-term implications for the industry.
Tariffs are like a spider’s web cast over the world with the spider, crawling around collecting from its prey.
Trump’s tariffs continue to ‘infect’ world trade, and they will be here for a while yet.
Do you believe in the ‘collective unconscious’, a universal mind to which all humanity is connected?
In the context of the financial world, the stock market is based on unwavering fundamental mathematics… numbers. However, is often driven by sentiment, instinct, hopes and fears.
They both function in a similar manner.
In other words, it is essentially a sentiment tracker.
This was very evident in the stock market movement during ‘normal’ trading hours immediately preceding U.S. President Donald Trump’s tariff plan unveiling, contrasted with extended trading.
Investors had time to digest the sheer weight of the heavy tariffs on countries across the globe – we then witnessed an instant stock reversal after almost ‘normal’ trading before.
The point
Trump hinted at leniency on tariffs days before revealing his true intentions. However, that sense of mercy was absent, as the tariffs were sweeping and severe.
To describe Trump’s plan as a seismic shift in the economic and financial order might be understatement.
It will take time for tariff price changes to filter into the economy, but the stock market, reflecting the collective unconscious of investors, registered this shock instantly – just minutes after a stock climb.
Globalisation is a process that has woven the world together, creating interconnected networks of trade, culture, technology, and governance.
At its core, globalisation refers to the increased interaction and integration between people, companies, and governments across the globe.
This phenomenon has profound economic, political, and cultural implications, shaping the way we live and think.
Historically speaking
Historically, globalisation is not a recent occurrence; it has been evolving for centuries. The roots of globalisation can be traced back to ancient civilizations when trade routes like the Silk Road emerged around 130 BCE during the Han Dynasty of China.
The Silk Road connected Asia, the Middle East, Europe, and North Africa, facilitating the exchange of goods, ideas, religions, and innovations. While it was primarily a trade route, it also marked the first notable instances of cross-cultural interaction on a global scale.
However, the modern wave of globalisation began much later. Many historians point to the Age of Exploration in the late 15th and early 16th centuries as a pivotal moment.
European explorers like Christopher Columbus and Vasco da Gama sought new trade routes to Asia and the Americas, leading to the establishment of colonial empires.
These explorations were driven by ambitions of trade, wealth, and power, further intertwining economies and cultures.
Adam Smith, the 18th-century economist and philosopher, can also be credited with significantly influencing globalisation through his ideas. His seminal work, The Wealth of Nations (1776), laid the foundation for modern economics and advocated for free-market trade.
His philosophies supported the idea of open international markets, which became a cornerstone of globalisation in later years.
Industrial revolution
Fast forward to the 19th and 20th centuries, the Industrial Revolution and advancements in technology supercharged globalisation.
Railroads, steamships, telegraphs, and later airplanes and the internet, reduced distances and enhanced global connectivity.
This period also saw the establishment of international organisations such as the United Nations and the World Trade Organisation, further embedding globalisation into global policies.
Evolution
Today, globalisation continues to evolve. While it has brought unparalleled access to goods, services, and information, it has also sparked debates about its impact on inequality, environmental sustainability, and cultural homogenisation.
As nations and individuals grapple with its implications, globalisation remains a defining characteristic of our interconnected world. Its history is a testament to humanity’s constant quest to connect, collaborate, and innovate.
Tariffs
The introduction of ‘protectionist’ policies and ideals will likely lead back to globalisation in the end. Are Trump’s protectionist tariff ideals about protectionism or more about a drive to level the imbalance of global trade differences? Gobal trade will not end!
The tariffs are more about aiming to settle trade imbalances, at least according to U.S. President Trump.
Trump’s tariffs have had a significant impact on globalisation, challenging its trajectory. By imposing sweeping tariffs on imports, including a baseline 10% on goods from various countries, Trump aimed to reduce the U.S. trade deficit and reshore U.S. manufacturing.
While this approach sought to protect domestic industries, it disrupted global trade networks and raised concerns about inflation and economic instability.
These tariffs marked a shift away from decades of free trade policies that had fostered globalisation. Critics argue that such measures could lead to higher consumer prices and strained international relations.
On the other hand, proponents believe they might encourage self-reliance and industrial growth within the U.S.
The long-term effects on globalisation remain uncertain. While some see this as a step toward de-globalisation, others view it as a recalibration of trade dynamics.
The future will likely depend on how nations adapt to these changes and whether they seek collaboration or confrontation in global trade.
The stock market is no stranger to volatility, and recent events have left investors grappling with uncertainty.
However, for those who embrace a contrarian mindset, the current wave of pessimism might just be the golden opportunity they’ve been waiting for.
Historically, extreme market pessimism has often preceded significant rebounds. The contrarian philosophy – buying when others are selling – rests on the belief that markets tend to overreact to negative news.
This overreaction creates opportunities for savvy investors to capitalise on undervalued assets.
Recent market turbulence, fueled by concerns over global trade policies and economic slowdowns, has pushed sentiment to new lows. Yet, history suggests that such moments of despair often mark the beginning of recovery.
For instance, during similar periods of heightened pessimism, indices like the S&P 500 have shown remarkable gains in subsequent months.
The last time stock investors were so pessimistic was in October 2023, and then the S&P 500 rose 19% over the next three months
While risks remain, including the potential for prolonged economic challenges, the contrarian approach offers a glimmer of hope. By focusing on long-term fundamentals and resisting the urge to follow the herd, investors may find themselves well-positioned to benefit from the market’s eventual rebound.
In the end, the key lies in patience and perspective. As the saying goes, ‘Fortune favours the bold’ – and in the world of investing, boldness often means going against the grain.
Some of the strangest locations affected by Trump’s tariffs include an uninhabited island near Antarctica?
U.S. President Donald Trump’s ‘reciprocal tariffs‘ hit major trading partners around the world, but some tiny islands and remote locations were also unlikely targets.
These ‘odd’ choices have cast doubt on the validity of the calculation used to fire off these tariff salvos.
President Donald Trump set a baseline tariff rate of 10% across the board, with a raft of levies affecting over 180 countries.
The Russell 2000, a key benchmark for small-cap U.S. stocks, has officially entered bear market territory.
This means the index has fallen more than 20% from its all-time high in late November 2024. The decline was accelerated by the recent rollout of President Donald Trump’s sweeping tariffs, which have raised concerns about rising costs, economic softening, and global supply chain disruptions3.
Small-cap stocks, which were initially seen as beneficiaries of Trump’s policies due to their domestic focus, are now facing significant challenges. Many of these companies are particularly vulnerable to input cost shocks and lack the financial flexibility of larger firms.
Analysts warn that the combination of higher costs and a slowing economy is squeezing profits, leaving small caps in a precarious position.
The Russell 2000’s downturn highlights the broader market volatility triggered by the tariff measures. While other major indices like the S&P 500 and Nasdaq are in correction territory, the Russell 2000 was the first to enter a bear market.
Russell 2000 index
Russell 2000 index
This development underscores the heightened risks for small-cap stocks in the current economic climate.
Despite the challenges, some strategists believe there could be opportunities for recovery, particularly if the Federal Reserve takes steps to cut interest rates.
However, Trump’s tariffs have introduced uncertainty into this policy, as inflation is likely to increase, casting doubt on the possibility of further interest rate cuts.
For now, the Russell 2000’s performance serves as a stark reminder of the delicate balance between protectionist policies and market stability.
The Russell 2000, a key benchmark for small-cap U.S. stocks, has officially entered bear market territory.
Dow Jones decline – the ripple effects of tariff policies
The Dow Jones Industrial Average has seen a sharp decline, falling from its all-time high of 45,073.63 points in December 2024 to its current level of 38,314.86 points—a drop of approximately 15%.
Dow Jones one-year chart
Dow Jones one-year chart
This downturn reflects a mix of economic challenges, including the impact of President Donald Trump’s tariff policies.
Trump’s sweeping tariffs, introduced as part of his ‘Liberation Day‘ initiative, aimed to bolster American manufacturing by imposing taxes on imported goods. While the policy sought to ‘level the playing field’, it triggered significant disruptions in global trade.
Retaliatory tariffs from key trading partners, including China and the European Union, compounded the issue, ultimately leading to higher costs for U.S. businesses and consumers.
The tariffs have also strained supply chains, particularly in industries reliant on international components. This has contributed to inflationary pressures, further dampening investor sentiment.
The tech sector, already grappling with regulatory scrutiny, has been hit hard, with companies facing increased production costs.
Nasdaq tech 100 one-year chart
Nasdaq tech 100 one-year chart
While some view the market’s decline as a natural correction, others warn of prolonged economic challenges, especially with the uncertainty surround Trump’s tariff agenda.
For investors, the key lies in navigating these turbulent times with caution and a focus on long-term fundamentals.
As the Dow adjusts to these pressures, its performance underscores the far-reaching consequences of trade policies on global markets.
The stock market was smashed for a second day Friday 4th April 2025 after China retaliated with new tariffs on U.S. goods, sparking fears President Donald Trump has ignited a global trade war that will lead to a global recession.
Stock market damage
The Dow Jones Industrial Average dropped 2,231.07 points, or 5.5%, to 38,314.86 on Friday 4th April 2025, the biggest decline since June 2020 during the Covid-19 pandemic.
This follows a 1,679-point decline on Thursday 3rd April 2025 and marks the first time ever that it has shed more than 1,500 points on consecutive days.
The S&P 500 collapsed 5.97% to 5,074.08, the biggest decline since March 2020. The benchmark shed 4.84% on Thursday 3rd April 2025 and is now down more than 17% off its recent high.
The Nasdaq Composite, home to many well-known tech companies that sell to China and manufacture there as well, dropped 5.8%, to 15,587.79.
This follows a nearly 6% drop on Thursday 3rd April 2025 and takes the index down by 22% from its December 2024 record – pushing it into a bear market.
The selling was wide ranging with only 14 members of the S&P 500 higher on the day. Major market indexes closed at their lows of the session.
China’s commerce ministry said the country will impose a 34% levy on all U.S. products, disappointing investors who had hoped countries would negotiate with Trump before retaliating.
Technology stocks led the massive rout Friday
Apple shares slumped 7%, bringing its loss for the week to 13%.
Nvidia dropped 7% during the session.
Tesla fell 10%.
All three companies have large exposure to China and are among the hardest hit from Beijing’s retaliatory tariffs.
The bull market is dead, and it was destroyed by self-inflicted wounds!
China has reportedly announced a significant escalation in its trade dispute with the United States, declaring a 34% retaliatory tariff on all U.S. goods.
The Chinese Ministry of Finance reportedly stated that these measures are aimed at safeguarding China’s economic interests and countering what it describes as ‘unilateral bullying’ by the U.S. government.
The tariffs will apply across a wide range of American exports, potentially impacting industries such as agriculture, technology, and manufacturing.
This development has heightened global market uncertainty, with investors bracing for further economic disruptions.
The ongoing tit-for-tat measures between the two economic giants underscore the fragility of international trade relations in the current climate.
The U.S. stock market experienced a dramatic plunge following President Donald Trump’s announcement of sweeping tariffs, marking one of the most significant market downturns since 2020.
On 3rd April 2025, the Dow Jones Industrial Average plummeted by 1,600 points, a staggering 4% drop, closing at 40,546.
Dow Jones one day chart
The S&P 500 fell by 4.8%, while the tech-heavy Nasdaq Composite suffered a 6% decline, reflecting widespread investor anxiety.
S&P 500 one day chart
Trump’s tariffs, which include a baseline 10% levy on imports from all trading partners and higher rates for specific countries, have sparked fears of a global trade war.
The effective tariff rate for China, for instance, has risen to 54%, raising concerns about supply chain disruptions and inflation. Major industries, including technology, retail, and manufacturing, were hit hard.
Apple shares dropped nearly 10%, while companies like Nike and Nvidia saw significant losses.
Apple one day chart
The market reaction underscores the uncertainty surrounding the economic impact of these tariffs. Analysts warn that the measures could dampen consumer spending, increase inflation, and slow economic growth.
The ripple effects were felt globally, with European and Asian markets also experiencing declines. The Nikkei index declined a further 3%.
Nikkei Index five-day chart
Despite the turmoil, Trump defended the tariffs, likening them to a necessary ‘operation’ for the economy. He expressed confidence that the markets would eventually rebound, emphasising the long-term benefits of reshoring manufacturing and generating federal revenue.
As investors grapple with the implications of these policies, the focus remains on potential retaliatory measures from affected countries and the broader impact on global trade dynamics.
The sharp market sell-off serves as a stark reminder of the delicate balance between protectionist policies and economic stability in an interconnected world.
The coming weeks will be crucial in determining whether these tariffs lead to lasting economic shifts or temporary market volatility.
U.S. companies are experiencing more harm from Trump’s tariffs. He wants manufacturing to come back to America – but after decades of globalization fine tuning – that is no easy task.
Are markets underestimating the impact of the tariffs on inflation?
Are markets pricing in the fact that Trump’s tariff policy will not be fully followed through?
The U.S. would be lucky to see a single rate cut from the Federal Reserve this year – and that will unsettle investors.
The U.S. economy could now only expand by between 1% and 1.5% this year – this would be a significant change in the growth outlook when compared with the International Monetary Fund’s (IMF) projection of 2.7% U.S. growth made earlier this year.
If we get close to 1%, we get close to ‘stall’ speed and then it could just stop – and that will mean recession or worse for the U.S.
Tariffs are terrific, according to Trump – it’s his most favourite word.
Donald Trump’s ‘Liberation Day’ tariffs have sent shockwaves through global trade, marking a dramatic escalation in his tariff trade war strategy. The day of economic independence.
The President of the United States proudly showed off his tariff agenda neatly displayed on a chart akin to a ‘pub quiz scoreboard’.
In the White House Rose Garden on 2nd April 2025 Trump happily unleashed tariff turmoil on a global scale.
Announced with his usual characteristic bravado, these tariffs were ‘calculated’ to impose ‘reciprocal’ charges on imports from over 180 countries, including allies like the UK, the European Union and Canada.
It’s not fair
Trump claims this move will restore fairness in global trade and bolster American manufacturing, but critics warn of dire economic consequences.
The tariffs vary by country, with the UK facing a 10% levy on all exports to the U.S., while the EU faces a 20% tariff. China, already subject to existing tariffs, now faces a combined rate of 54%.
The automotive industry has been hit particularly hard, with a 25% tariff on foreign-made vehicles, threatening thousands of jobs around the world.
Trump’s announcement, delivered in the White House Rose Garden, was accompanied by a chart comparing tariffs imposed by other countries on U.S. goods.
He argued that these measures are necessary to counter years of unfair trade practices and to ‘make America wealthy again’.
However, economists and analysts have expressed concerns that these tariffs could plunge the global economy into a downturn, disrupt decades-old trade alliances, and spark retaliatory measures from affected nations.
Keep calm and carry on
The UK government, led by Prime Minister Keir Starmer, has reportedly vowed to take a calm and pragmatic approach, emphasizing the importance of securing a wider economic prosperity deal with the U.S.
Chancellor Rachel Reeves acknowledged that the UK would not be ‘out of the woods’ even if exemptions are secured, citing the broader impact of global tariffs.
As nations brace for the fallout, Trump’s Liberation Day tariffs may well redefine the landscape of international trade, for better or worse. The world watches as the ripple effects unfold.
Understandably stock markets reacted badly as futures tumbled. The Dow Jones was down 1000 points. Nikkei down 4%. S&P 500 down 3%.
President Donald Trump is to begin the biggest gamble of his second term – ‘Liberation Day’ wagering that broad-based global hitting tariffs on imports will instigate a new era for the U.S. economy.
The concern right now is no one outside the administration knows quite how those goals will be achieved, and what will be the price to pay.
Basically, tariffs are a tax on imports and, theoretically, are inflationary. In practice, though, it doesn’t always work that way.
The U.S. economy is showing potential signs of stagflation where growth is slowing, and inflation is proving stickier than expected.
Trump’s Liberation Day is here – we will see what that actually means in practice.
OpenAI on Monday 31st March 2025 announced it had closed its $40 billion funding round, the most ever raised by a private tech company.
The deal values OpenAI at $300 billion, including the new capital.
The round includes $30 billion from SoftBank and $10 billion from a syndicate of investors.
OpenAI is now more valuable than Chevron.
The generative AI market is projected to exceed $1 trillion in revenue within the next decade. Companies such as Google, Amazon, Anthropic, and Perplexity are rapidly unveiling new products and features as competition to develop ‘AI agents’ intensifies.
The cryptocurrency market has been rocked by significant declines in two of its flagship assets, Bitcoin and Ether.
This downturn reflects mounting concerns over broader economic challenges, including inflationary pressures and uncertainties surrounding Trump’s global trade tariffs.
Snapshot data from CMC
Bitcoin, often seen as a digital gold and a hedge against traditional financial instability, saw its value dip below $80,000. Similarly, Ether, the second-largest cryptocurrency by market capitalisation, tested the $2,100 threshold, shaking investor confidence.
Cryptocurrency fear and greed index chart from CMC
Cryptocurrency fear and greed index from CMC
The decline comes as central banks continue to grapple with persistent inflation, leading to speculation about further interest rate hikes. These economic conditions have raised fears that tighter monetary policies could dampen the speculative fervour that has long driven crypto markets.
In parallel, ongoing uncertainties about global trade tariffs have added another layer of complexity. Concerns about supply chain disruptions and escalating trade tensions have created a cautious environment for investors, spilling over into the volatile cryptocurrency sector.
While cryptocurrencies are no stranger to price swings, the current drop underscores their vulnerability to macroeconomic trends. As investors await clarity on inflation and tariff policies, the market could remain turbulent in the near term.
The resilience of Bitcoin and Ether will likely be tested as they navigate these economic headwinds.
Gold, however, has recently touched new all-time highs.
Stocks sold off sharply on Friday 28th March 2025, pressured by growing uncertainty on U.S. trade policy as well as a grim outlook on inflation
The Dow Jones Industrial Average closed down 715 points at 41,583. The S&P 500 lost 1.97% to close 5,580 ending the week down for the fifth time in the last six weeks. The Nasdaq Composite plunged 2.7% to 17,322.
Shares of several technology giants also fell putting pressure on the broader market. Google-parent Alphabet lost 4.9%, while Meta and Amazon each shed 4.3%.
This week, the S&P 500 lost 1.53%, while the 30-stock Dow shed 0.96%. The Nasdaq declined by 2.59%. With this latest losing week, Nasdaq is now on pace for a more than 8% monthly decline, which would be its worst monthly performance since December 2022.
Dow Jones one-day chart (28th March 2025)
Dow Jones one-day chart (28th March 2025)
Stocks took a leg lower on Friday after the University of Michigan’s final read on consumer sentiment for March 2025 reflected the highest long-term inflation expectation since 1993.
Friday’s core personal consumption expenditures price index also came in hotter-than-expected, rising 2.8% in February and reflecting a 0.4% increase for the month, stoking concerns about persistent inflation.
Economists had reportedly been looking for respective numbers of 2.7% and 0.3%. Consumer spending accelerated 0.4% for the month, below the 0.5% forecast, according to fresh data from the Bureau of Economic Analysis.
The market is getting squeezed by both sides. There is uncertainty about reciprocal tariffs hitting the major exporting sectors like tech alongside concerns about a weakening consumer facing higher prices
Trump’s tariffs push will hit the U.S. harder than Europe in the short term, it has been reported.
Japan’s Nikkei enters correction as Trump’s tariff assault drives sell-off in Asia markets
Consumer spending accelerated 0.4% for the month, below the 0.5% forecast, but personal income posted a 0.8% rise, against the estimate for 0.4%.
If we were to combine these higher inflation figures with Trump’s tariffs and the unrest Trump is creating around the world and of the tensions with Russia and China – it doesn’t bode well for the future!
U.S. tech giants are making bold strides in the development of humanoid robots, signalling a transformative shift in the robotics industry
Companies like Tesla, Google, Microsoft, and Nvidia are investing heavily in this cutting-edge technology, aiming to create machines that mimic human movement and behaviour.
These humanoid robots are envisioned to revolutionise industries ranging from manufacturing to healthcare, offering solutions to labor shortages and enhancing productivity.
Tesla’s Optimus project is a prime example of this ambition. CEO Elon Musk has announced plans to produce thousands of these robots, designed to perform repetitive and physically demanding tasks.
Optimus robots are expected to integrate seamlessly into factory settings, reducing the need for human intervention in hazardous environments.
Similarly, Boston Dynamics, known for its agile robots, continues to push the boundaries of what humanoid machines can achieve, focusing on tasks that require precision and adaptability.
The integration of artificial intelligence (AI) is a driving force behind these advancements. AI enables robots to learn from their environments, adapt to new tasks, and interact with humans in more intuitive ways.
Companies like Nvidia are leveraging their expertise in AI and machine learning are helping to develop robots capable of complex decision-making and problem-solving.
However, challenges remain. High production costs, limited battery life, and safety concerns are significant hurdles that need to be addressed before humanoid robots can achieve widespread adoption.
Despite these obstacles, the potential benefits are immense. From assisting the elderly to performing intricate surgeries, humanoid robots could redefine the boundaries of human capability.
As U.S. tech giants continue to innovate, the race to dominate the humanoid robotics market intensifies.
Tesla Optimus Gen 2
With China and other nations also making significant investments, the competition is fierce. Analysts warn that U.S. firms could lose out to China, which aims to replicate its success with electric vehicles in the robotics space race.
The future of humanoid robots promises to be a fascinating blend of technology, creativity, and global collaboration
U.S. companies that may benefit from this AI humanoid tech advancement
Tesla: Known for its Optimus humanoid robot project, Tesla is pushing boundaries in robotics and AI.
Google (Alphabet): A leader in AI and robotics research, with projects aimed at enhancing humanoid capabilities.
Microsoft: Investing in AI technologies that support robotics and automation.
Nvidia: Provides advanced AI chips and systems crucial for humanoid robot development.
Boston Dynamics: Famous for its agile robots like Atlas, focusing on precision and adaptability.
Agility Robotics: Creator of Digit, a humanoid robot designed for logistics and manufacturing.
Meta (Facebook): Exploring humanoid robots for social and interactive applications.
Apple: Investing in robotics and AI for potential humanoid advancements.
Amazon: Developing robots like Astro for home monitoring and other tasks.
Figure AI: Innovating humanoid robots like Figure 02 for various industries.
Bill Gates on AI
Bill Gates has shared some fascinating insights about AI recently. He reportedly believes that within the next decade, AI will transform many industries, making specialised knowledge widely accessible.
For example, he predicts that AI could provide high-quality medical advice and tutoring, addressing global shortages of doctors and educators.
Gates has also described this shift as the ‘age of free intelligence,’ where AI becomes a commonplace tool integrated into everyday life. While he acknowledges the immense potential of AI to solve global challenges – like developing breakthrough treatments for diseases and innovative solutions for climate change – he also recognises the disruptive impact it could have on jobs and the workforce.
Despite these concerns, Gates remains optimistic about AI’s ability to drive innovation and improve lives.
He has emphasised that certain human activities, like playing sports or hosting talk shows, will likely remain uniquely human.
However, despite all these predictions from powerful tech leaders – it does beg the question, do these ultra rich CEOs predict the future, or simply make it?
What if Quantum Physics coincides and collides with the ‘full’ arrival of AI and humanoid robots
Quantum computing could enhance the capabilities of AI-powered robots by solving complex optimisation problems, improving machine learning algorithms, and enabling real-time decision-making.
For instance, robots equipped with quantum sensors could navigate intricate environments, detect subtle changes in their surroundings, and interact with humans in more intuitive ways.
This fusion could revolutionise industries such as healthcare, manufacturing, and space exploration. Imagine humanoid robots performing intricate surgeries with precision, managing large-scale logistics, or exploring distant planets with advanced problem-solving abilities.
However, this convergence also raises ethical and societal questions. The potential for such powerful technologies to disrupt industries, impact employment, and challenge privacy norms must be carefully managed.
Collaboration between scientists, policymakers, and ethicists will be crucial to ensure these advancements benefit humanity as a whole.
The intersection of quantum physics, AI, and humanoid robotics is not just a technological milestone – it’s a glimpse into a future where the boundaries of human capability and machine intelligence blur.
It’s an exciting, albeit complex future humans are creating.
But will AI surpass human intelligence – and if it does what then for the human civilisation?
