• Powell Struggles: Balances inflation, growth risks due to tariffs. Rate cut expected.
• China Tariffs: Imposes 84% tariff on US goods.
• Ark Buys Nvidia: Re-establishes position, buys Amazon, Tempus AI.

I. Market Report

US stock futures were down sharply again on Wednesday after China announced retaliatory tariffs on U.S. goods in the latest escalation of global trade tensions.

As of 08:10 AM, ET(or 03:10 pm in Riyadh), Dow Jones Industrial Average futures dropped 731 points, or 2.1%. S&P 500 futures slid 1.75%, and Nasdaq-100 futures declined 1.52%.

As of 08:10 AM, ET (or 03:10 pm in Riyadh), top pre-market movements are as follows:

II. Flash Headlines

Powell Faces Tough Decision

Federal Reserve Chairman Powell is struggling to balance inflation and weak growth risks due to Trump's tariff policy. Investors expect a rate cut later this year.

Roubini Warns Against Aggressive Rate Cuts

Nouriel Roubini, known as "Dr. Doom", advises traders to reduce bets on aggressive Fed rate cuts to mitigate Trump's trade wars. He expects the Fed to keep rates steady, predicting Trump will succumb to market pressures first, while the Fed fights inflation cautiously.

US Long-Term Swap Spreads Narrow Rapidly

US 30-year Treasury yields surged above 5% then retreated, amid yield curve steepening and asset class volatility. Long-end swap spreads narrowed historically rarely, suggesting liquidity issues and potential market misalignment. Concerns grow over tariff-fueled inflation, Fed inaction, and foreign reserve managers pulling out. 

Gold ETF Inflows Surge

Gold exchange-traded funds saw largest quarterly inflows in three years at 226.5 tonnes, worth US$21.1 billion, due to safe-haven demand amid global trade war and economic turmoil fears.

China Imposes 84% Tariff On US Goods

China Finance Ministry imposes additional tariffs of 84% on goods imported from the US.

III. Stocks To Watch

iPhone US Manufacturing Cost?

If Apple Inc.(AAPL.US)  iPhone is made in the US, the price could reach US$3,500 due to tariffs, says Wedbush Securities analyst. 

Ark Re-Establishes Nvidia Position

Cathie Wood's ARK Innovation ETF(ARKK.US)  re-established a position in Nvidia, buying 188,980 shares worth US$18.2 million. Amazon.com, Inc.(AMZN.US)  and Tempus AI(TEM.US)  were also bought, while Coinbase Global, Inc.(COIN.US)  received further investment despite recent market turbulence.

Trump Hints At 'Major Tariff' On Imported Pharmaceuticals

President Trump, on Tuesday, disclosed plans for a “major tariff” on foreign pharmaceuticals. Trump is hopeful that this move will prompt drug companies to shift their operations to the U.S., as reported. Pfizer Inc.(PFE.US)  declined 3.5%, while Eli Lilly and Company(LLY.US)  lost 3.2%. Astrazeneca PLC Sponsored ADR(AZN.US) , Amgen Inc.(AMGN.US)  and Merck & Co., Inc.(MRK.US)  dropped, during the Wednesday pre-market trading session.

Huang's Pragmatic Vision for Nvidia

NVIDIA Corporation(NVDA.US) 's CEO Jensen Huang, detailed in Stephen Witt's book, focuses on practical AI challenges, contrasting with Elon Musk's futuristic approach. Huang hates science fiction and is nervous about public speaking.

Apple Rushed iPhone Shipments Ahead Of Tariffs

Apple Inc.(AAPL.US)  flew 5 planeloads of iPhones from India and China to US within 72 hours to beat Trump's 10% tariff on Apr. 5. A steeper 104% tariff on Chinese goods was implemented later. Shares have fallen 23% since Apr. 2 amid trade tensions.

BTC Near Buy-In Threshold For MSTR

Michael Saylor of MicroStrategy Incorporated Class A(MSTR.US)  remains confident in Bitcoin (CRYPTO:BTC), despite the apex crypto being 11% away from flipping the firm's US$67,458 avg buy-in price to a loss. Current BTC price is US$76,048.

Delta Air Lines Beats EPS & Sales Estimates

Delta Air Lines, Inc.(DAL.US)  Q1 2025 adj EPS US$0.46 beats US$0.38 estimate, sales US$14.04B beats US$13.02B estimate.

China Dumping US Treasuries?

Palantir Technologies(PLTR.US)  co-founder Joe Lonsdale wonders if China is dumping treasuries amid trade tensions. Tesla Motors, Inc.(TSLA.US)  director Kimbal Musk says China's selling may pressure Fed ahead of US$6.5 trillion debt refinancing deadline.

IV. Calendar

Day's Notable Event(s):