GuShiio.com ① Most popular Chinese stocks closed higher, with the Nasdaq China Golden Dragon Index rising 1.95%;
② Apple launches iPadAir equipped with an M3 chip and a new smart keyboard;
③ Canada announced that it will impose a 25% tariff on $155 billion worth of U.S. goods;
④ The U.S. Commerce Secretary said Trump may cut tariffs on the United States and Mexico tomorrow.
Financial Union, March 5 (Editor Niu Zhanlin)On Tuesday, U.S. Eastern Time, trade tensions continued to escalate after the United States began imposing new tariffs on China, Mexico and Canada. Investors sold off risky assets and all three major U.S. stock indexes fell.
During Trump’s first term, he often talked about the performance of the stock market and believed that the rise of U.S. stocks was one of his major achievements. But now, he seems to have stopped paying attention to the stock market and allowed his policies to hit the market.
Analysts at Colliers Securities said: “While I view these Trump announcements as tentative measures, I am also aware of the serious consequences that could be. It is clear that the old business model has disappeared and Trump’s new policy direction is a major change from the past. We have entered a new era, so we must be cautious when investing because the future is too uncertain.”
U.S. tariff measures on Mexico and Canada were formally implemented on Tuesday, before Canada and Mexico launched a comprehensive counterattack, fueling concerns about a global trade war and economic woes.
Canadian Prime Minister Trudeau accused at a congressional press conference: “What Trump wants to see is the complete collapse of the Canadian economy, making it easier to annex Canada. We will never become the 51st state of the United States, but he could hurt the Canadian economy, and he started doing that this morning.”
In addition, Canada announced that it would impose a 25% tariff on $155 billion worth of U.S. goods, starting with $30 billion, and would impose sanctions on another $125 billion worth of goods in 21 days.
Mexican President Simbaum said on the same day that he would announce countermeasures against the US tariff increase on Mexico on the 9th. The Mexican government condemned the United States for unilaterally imposing tariffs on Mexico. Mexico does not accept US hegemony, and the tariff increase violates free trade agreement.
Clark Geranen, chief market strategist at CalBay Investments, pointed out: “Although the tariff war has begun, it is unclear how long these tariffs will last. We tend to think that this is more a negotiating tactic than the beginning of a protracted trade war. However, in this case, investors will sell first and then ask questions.”
Daniel Skelly, head of the market research and strategy team at Morgan Stanley Wealth Management, said: “With the formal implementation of these tariffs, it remains to be seen whether market pessimism about tariffs will dissipate. The index may be in a short-term adjustment phase, and investors are advised to focus on high-quality stocks that will be less affected by tariffs.”
It is worth noting that after U.S. stocks closed, the U.S. Commerce Secretary said that Trump may cut tariffs on the United States and Mexico tomorrow. “Mexican and Canadian officials have been talking to me on the phone all day today, trying to show that they will do better, and the president is listening, so I think he will reach some agreement with them, and it won’t be a tariff suspension or something, but I think Trump will reach a compromise with them on some fronts, and we will probably announce it tomorrow.”
market dynamics
At the close, the Dow fell 670.25 points, or 1.55% to 42,520.99 points; the Nasdaq fell 65.03 points, or 0.35% to 18,285.16 points; the S & P 500 Index fell 71.57 points, or 1.22% to 5,778.15 points.
Most U.S. stock industry ETFs fell. Banking ETFs closed down 3.71%, financial industry ETFs fell 3.52%, regional bank ETFs fell 3.5%, and aviation industry ETFs fell 3.38%. The global technology index ETF closed up 0.15%, while the semiconductor ETF rose 1%.
The 11 S & P sectors generally fell, with the energy sector down 0.86%, the optional consumption sector down 1.67%, the raw materials sector down 1.38%, the industrial and telecommunications sector down 1.96%, the financial sector down 3.5%, and the real estate sector down 1.2%.
Performance of hot stocks
Most large technology stocks fell, with Tesla falling more than 4%, Meta falling more than 2%, Google rising more than 2%, Nvidia rising nearly 2%, Amazon falling 0.60%, and Microsoft rising 0.03%.
Automakers with large supply chains in North America will be hit by tariffs, with Ford down 2.9% and General Motors down 4.6%.
The aviation and banking sectors were among the top losers, with Delta Air Lines falling more than 6%, and State Street Bank, JetBlue and West Airways falling more than 5%.
Best Buy plunged 13.3%, warning that tariffs could lead to price increases and issued pessimistic expectations.
Most popular Chinese stocks closed higher, with the Nasdaq China Golden Dragon Index rising 1.95%. Jinshanyun rose by more than 7%, Beilai rose by more than 5%, Fangduo and Vipshop rose by more than 4%, and Baidu and Douyu rose by more than 3%.
company news
[Goldman Sachs plans to lay off 3% to 5% of employees, targeting the vice president level]
Goldman Sachs is preparing for its annual layoffs, which will focus on the vice-president level. Goldman Sachs CEO David Solomon has told executives that the company has hired too many vice presidents in recent years compared to its overall hiring size, people familiar with the matter said. The goal of layoffs is to increase company efficiency, and Salomon makes this a priority. About 3% to 5% are expected to be laid off, and Goldman Sachs has a total workforce of 46,500 as of 2024. The layoffs are part of Goldman Sachs ‘annual layoffs. Executives said layoffs could take place this year in the spring, rather than the usual September in recent years, which would help boost company results early in the year.
[Apple launches iPad Air equipped with M3 chip and new smart keyboard starting at $599]
Apple announced that starting today, customers can pre-order iPadAir and Magic Keyboard keyboards equipped with powerful M3 chips, starting March 12. The iPad Air equipped with the M3 is nearly 2 times faster than the iPad Air equipped with the M1 and 3.5 times faster than the iPad Air equipped with the A14 bionic chip. The Wi-Fi model of the 11-inch iPad Air starts at $599, and the Wi-Fi+ cellular model starts at $749. The Wi-Fi model of the 13-inch iPad Air starts at $799, and the Wi-Fi+ cellular model starts at $949.
[OpenAI’s latest launch of NextGenAI is committed to accelerating scientific research breakthroughs and educational change]
OpenAI has launched NextGenAI. NextGenAI is a pioneering alliance of 15 leading research institutions committed to using artificial intelligence to accelerate scientific breakthroughs and transform education. OpenAI says artificial intelligence has the potential to drive progress in scientific research and education, but only if people have the right tools to use it. To this end, OpenAI has committed US$50 million in research funding, computing resource support, and API access to support students, educators, and researchers in advancing the knowledge frontier.
[Changhe plans to sell the majority stake in Panamanian port operator PPC to the BlackRock TiL consortium]
Changhe announced on the Hong Kong Stock Exchange that the company reached an agreement in principle with the BlackRock-TiL consortium on March 4 to sell Hutchison Ports ‘90% interest in Panama Ports Company. PPC owns and operates the ports in Balboa and Cristobal near the Panama Canal. The BlackRock-TiL consortium includes BlackRock, Global Infrastructure Partners and Terminal Investment Limited, and the transaction also involves CKH selling its holdings in Hutchison Port Holdings S.ar.l. (HPHS) and Hutchison Port Group Holdings Limited (HPGHL).
