Wall Street’s Weird Winners 04/04/2025

HOT stories for today

 

US market wrap:
 

• Wall Street was thrown into chaos Thursday as stocks endured their most brutal single-day collapse since the height of the pandemic in 2020, with the S&P 500 plunging 4.84%, the Dow Jones Industrial Average sliding 3.98%, and the Nasdaq Composite nosediving 5.97%, all triggered by President Donald Trump’s surprise announcement of sweeping new tariffs. The move rattled global markets and reignited fears of a full-scale trade war that could drag the U.S. economy into a deep recession.
• Investors scrambled for safety in a massive risk-off wave, slamming multinational firms and tech giants alike—Nvidia sank nearly 8%, Tesla fell over 5%, and the market mood turned sharply negative. Amid the financial fallout, President Trump compared the tariff rollout to “surgery,” calling it painful but essential, and promised that markets, stocks, and the nation would soon “boom” as global players rush to strike deals—but judging by the carnage on Wall Street, that promised rebound feels anything but imminent.

Wall Street’s Weird Winners

• Potatoes, pillmakers, and price-slasher stores: Unlikely heroes in a market bloodbath. As Wall Street reels from a brutal sell-off, a few surprising pockets of resilience are emerging—from humble spuds to no-frills retailers and pharmaceutical giants. In a sea of red, investors are clinging to what some are calling "recession-proof comfort zones."
• While tech giants and high-growth names collapse, essentials are holding their ground. Food producers like Lamb Weston [LW] are keeping potato prices steady, while grocery staples continue to move. Drugmakers such as Pfizer [PFE], Eli Lilly [LLY], and Teva Pharmaceuticals [TEVA] are benefiting from consistent demand that shrugs off market jitters. On the retail front, discount chains like Dollar General [DG], Costco [COST], and Walmart [WMT] are thriving as budget-conscious consumers tighten their belts and flock to value. In the chaos, investors are rediscovering the power of the boring-but-reliable: food, medicine, and affordability. As the broader market gets battered, these unflashy sectors are quietly keeping portfolios afloat.

 
Stocks on the move: 
      

• General Motors (GM -4%) dipped after the automaker reported marginal growth in its China operations. The company delivered just over 442,000 vehicles in Q1 2025, a slim 0.23% increase from the same period in 2024—just enough to show progress, but not enough to impress the market.
• Nvidia (NVDA -7%) took a sharp hit, falling more than 6% as concerns extended beyond trade tariffs. HSBC analyst Frank Lee downgraded the stock to ‘Hold’ from ‘Buy’ and slashed the price target to $120 from $175, citing valuation risks.
• Roundhill Magnificent Seven ETF (MAGS -6%) reflected a dramatic tech rout as the so-called "Magnificent Seven" stocks collectively shed nearly $1 trillion in market value—their worst single-day wipeout on record, according to MarketWatch.
• Pony.ai (PONY -8%), despite announcing a key permit to begin Level 4 robotaxi testing in Luxembourg, couldn’t escape the market’s bearish wave, sliding 8% in a risk-off session.
• On a rare up note, CASI Pharmaceuticals (CASI +1%) spiked as much as 5% before paring gains, after disclosing a $20 million buyout proposal for its China-based operations.
   

Today’s action

• Asian markets took a beating on Friday, following Wall Street’s worst sell-off in years after U.S. President Donald Trump unveiled sweeping tariffs that sent shockwaves through the global economy. Japan led regional losses, with the Nikkei 225 plunging 4.21% and the broader Topix index sliding 5.09%, echoing the dramatic downturn in U.S. equities. South Korea’s Kospi shed 1.78%, weighed down further by political turmoil after the country’s Constitutional Court upheld the impeachment of President Yoon Suk Yeol, formally removing him from office.Hong Kong and mainland Chinese markets remained closed for the Qingming Festival.
• Back in the U.S., futures pointed to more volatility. Dow Jones Industrial Average futures dropped (0.2%) Thursday night. S&P 500 futures slipped 0.1%, while Nasdaq 100 futures were slightly in the red. Traders are now eyeing the possibility of trade negotiations after Trump hinted at a willingness to talk—marking a surprising pivot from earlier hardline rhetoric. Meanwhile, all eyes on Friday will turn to the March jobs report, a closely watched economic indicator that could shape the next move for markets already on edge.

Watchlist: JNJ, TSLA, LLY, NKE, FDX, TSLA, MSFT, GM, CASI

Bitcoin

• Bitcoin (BTC) took a sharp dive Thursday, plunging to an intraday low of $82,352 just hours after U.S. President Donald Trump announced sweeping new tariffs, sending tremors through global markets—including digital assets. Despite a mild recovery near the $82,000 level, the world’s largest cryptocurrency still posted a 2.5% loss over the past 24 hours.
• The broader crypto market wasn't spared. Trump's trade policy bombshell wiped 3.43% off the total crypto market cap, dragging it down to $2.64 trillion at its weakest point. While BTC managed to hold relatively steady, ether [ETH] shed over 6%, and solana [SOL] dropped a steeper 6.6%, underscoring the heightened volatility and risk appetite surrounding altcoins. The swift downturn highlights how sensitive digital assets remain to macroeconomic shocks and geopolitical headlines, especially when investor nerves are already frayed by wider market turmoil.
  Watchlist: Bitcoin: 78 000-100 000, Ethereum:1780-2600, Solana: 100-150
   

Forex
 

• The Japanese Yen [JPY] continues to gain ground, rising for a fourth straight session on Friday as traders flock to safe havens amid rising fears that President Donald Trump’s tariffs could spark a global economic slowdown. The USD/JPY pair hovers near multi-month lows, driven by risk aversion and growing expectations of a BoJ rate hike later this year.
• At the same time, the Euro [EUR/USD] surged 1.8% on Thursday, breaking above 1.1000 as the U.S. Dollar sold off sharply. The Greenback remains under pressure following the Trump administration’s aggressive trade stance, with attention now turning to Friday’s key U.S. jobs report (NFP) for the next move.
  Watchlist: EUR/USD: 1.0700-1.0950, USD/JPY: 148-150
   

Basic Materials

• Gold pulled back on Friday, slipping below the $3,100 mark during the Asian session after failing to build on Thursday’s late rebound. While the precious metal saw renewed selling, downside appears limited amid a shaky macro backdrop. Trump's tariff-driven risk-off sentiment continues to support safe-haven demand, while Fed rate cut bets are keeping the U.S. dollar in check, helping to cushion gold's losses near record highs.
• Meanwhile, crude oil prices plunged over 5%, with WTI trading around $66.90 per barrel. Sentiment soured as Trump’s trade policy raised demand concerns, and OPEC+ added further pressure by announcing a surprise output hike of 411,000 barrels per day starting in May. The move includes earlier planned increases, further muddying the near-term outlook for oil.
  Watchlist: GOLD 2600-3100, US Oil: 65.00-79.00
   

Key Economic Events Today:

EST time
08:30 am: USD Non-Farm Employment Change
08:30 am: USD Unemployment Change
11:25 am: USD FED Chair Powell Speaks
12:00 pm: USD FOMC Member Barr Speaks
12:45 pm: USD FOMC Member Waller Speaks

Earnings

BMO (Before the US Market opens)
Nothing
AMC (After the US Market closes): Enjoy your weekend!


The TEFS Analyst team wishes you a successful day!