Market Overview

The stock market experienced a significant decline as the new week began. Major equity indices saw consistent downturns throughout the session. The Dow Jones Industrial Average fell by 970 points, the Nasdaq Composite decreased by 2.6% compared to Thursday, and the S&P 500 recorded a 2.4% drop.

Factors Driving the Decline

- Trade Policy Concerns: Ongoing worries about trade policies intensified, particularly after China advised against engaging in U.S. trade deals that might disadvantage Beijing. - Federal Reserve Uncertainty: Speculation arose that President Trump's team is considering the legality of removing Federal Reserve Chair Jerome Powell, raising concerns about the central bank's independence.

Sector Performance

The market's broad retreat exhibited a risk-off bias, with significant declines led by big tech and other mega-cap stocks. Key movers included: - NVIDIA (NVDA): $96.91, down $4.58 (4.5%) - Microsoft (MSFT, Financial): $359.12, down $8.66 (2.4%) - Apple (AAPL): $193.16, down $3.82 (1.9%) - Tesla (TSLA): $227.50, down $13.87 (5.8%)

Currency and Bond Market

The U.S. dollar weakened, while longer tenors saw gains in the bond market. The 10-year Treasury yield increased by seven basis points to 4.41%, and the U.S. Dollar Index fell by 1.1% to 98.29.

Year-to-Date Performance

- Dow Jones Industrial Average: -10.3% - S&P 500: -12.3% - S&P Midcap 400: -14.1% - Nasdaq Composite: -17.8% - Russell 2000: -17.5%

Economic Data Review

- March Leading Indicators: Decreased by 0.7% (consensus was -0.4%); the prior figure was revised to -0.2% from -0.3%. - No notable U.S. economic data is expected tomorrow.

Upcoming Events

- Tuesday will feature the results of the $69 billion 2-year Treasury note auction at 1:00 p.m. ET.

International Markets

- Europe: DAX, FTSE, and CAC markets were closed. - Asia: Nikkei decreased by 1.3%, Hang Seng was closed, and Shanghai increased by 0.5%.

Commodities

- Crude Oil: $62.45, down $1.51 - Natural Gas: $3.02, down $0.22 - Gold: $3426.90, up $99.10 - Silver: $32.45, down $0.46 - Copper: $4.72, up $0.02

NVDA,MSFT,AAPL,TSLA

Guru Stock Picks

Eaton Vance Worldwide Health Sciences Fund has made the following transactions:

• Reduce in BSX by 16.37%
• Sold out in NEOG
• Add in ALGN by 29.95%
• New position in HUM

Jana Partners has made the following transactions:

• Add in RPD by 3.69%

Today's News

Uber (UBER, Financial) is facing a lawsuit from the U.S. Federal Trade Commission for allegedly deceptive practices related to its Uber One subscription service. The FTC claims Uber charged consumers without consent and made it difficult to cancel the service. The allegations suggest violations of the FTC Act and the Restore Online Shoppers’ Confidence Act. Uber is accused of misleading customers about subscription savings and cancellation policies.

Amazon (AMZN, Financial) shares fell over 3.5% after Wells Fargo reported that the company paused some data center leases, particularly international ones. This move aligns with similar actions by Microsoft (MSFT, Financial), as both companies reassess their leasing strategies. Despite the pause, other tech giants like Google (GOOG, Financial) and Meta (META, Financial) remain active in the data center space.

AGNC Investment (AGNC, Financial) reported better-than-expected Q1 earnings, with net spread and dollar roll income per share rising to $0.44, surpassing analyst expectations of $0.41. The stock saw a slight increase in after-hours trading. The company noted a decrease in tangible net book value but an improved economic return on tangible common equity.

Alphabet (GOOG, Financial) received an analyst upgrade from sell to hold, following a 26% price decline. The upgrade reflects a reassessment of Google's valuation and capital expenditure surge, despite a misleading P/E ratio. Similarly, Advanced Micro Devices (AMD, Financial) was upgraded to hold due to improved momentum indicators, though supply chain concerns persist.

Salesforce (CRM, Financial) shares dropped 5% as Bank of America Securities adjusted growth expectations for its Agentforce offering. The macroeconomic environment has delayed significant growth from the product to fiscal 2027. Despite the delay, Agentforce is expected to enhance productivity through autonomous AI agents.

Capital Southwest (CSWC, Financial) announced receiving a second SBA license, increasing its borrowing capacity to $350 million. This license allows Capital Southwest to issue SBA-guaranteed debentures, enhancing its investment capabilities in small businesses.

GameStop (GME, Financial) CEO Ryan Cohen faces a lawsuit from Bed Bath & Beyond over alleged insider trading. The retailer seeks to recover profits from Cohen's stock trading activities before it declared bankruptcy. The court ruling requires Cohen to defend against claims related to his investment stake.

Chevron (CVX, Financial) and other multinational oil companies exited their Red Sea concessions after unsuccessful explorations. Chevron confirmed relinquishing its stake but remains committed to exploring opportunities in Egypt's energy sector, particularly in the Mediterranean.

MP Materials (MP, Financial) shares dropped significantly after halting rare earth concentrate shipments to China due to retaliatory tariffs. The company is focusing on ramping up domestic production and fast-tracking heavy rare earth separation to become a leading Western producer.

Gene therapy companies saw a boost following positive comments from FDA Commissioner Martin Makary about new pathways for rare disease treatments. This optimism reflects growing confidence in the sector's potential to address rare diseases effectively.

GuruFocus Stock Analysis

• Dollar Falls to Multi-Year Lows as Trump Targets Federal Reserve Independence by Faizan Farooque
• Apple's China Dependence Leaves It Exposed as Tariff Risks Rise by Faizan Farooque
• Nvidia CEO Urges Japan to Boost Power Supply for AI Expansion by Faizan Farooque
• Apple's China Gamble at Risk as Global Tariff War Heats Up, Analyst Warns by Faizan Farooque
• Oil Demand Forecast Slashed as Global Trade War Slams Prices to 4-Year Lows by Faizan Farooque