Business and Finance News - 3.5.25

Author

Skool Projekt Staff
March 05, 2025

 

Here’s a quick rundown of today’s stories:

(Insights in our Top Stories) 

 

  • Best Buy’s Price Warning – The retailer beat earnings expectations but warned that tariffs will likely raise prices for consumers. With 75% of its supply chain tied to affected countries, its stock fell 13% as investors priced in potential sales declines.

  • Nasdaq Enters Correction – The Nasdaq fell 10% from its December peak as trade war fears weighed on major indexes. Tech and industrial stocks saw steep losses, with inflation and slowing growth raising expectations of Federal Reserve rate cuts.

  • Nvidia’s $265 Billion Wipeout – The chipmaker’s shares dropped nearly 9%, erasing a quarter-trillion in market value, as investors worried about new tariffs disrupting its supply chain. The company’s stock is now back to pre-election levels.

  • The Global Trade War Escalates – The U.S. imposed tariffs of up to 25% on imports from Canada, Mexico, and China, sparking retaliation. The move is expected to increase costs for businesses and consumers while fueling market volatility and economic uncertainty.

 

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TOP STORIES

 

Key Insight → Best Buy exceeded earnings expectations but warned that Trump’s new tariffs on China, Mexico, and Canada will likely lead to higher prices for consumers. With over 75% of its supply chain tied to these countries, the company expects price increases to impact sales throughout the year. The broader market reaction, including a 13% drop in Best Buy’s stock, reflects investor concerns over inflation, shifting consumer behavior, and economic uncertainty driven by escalating trade tensions.

 

Key Insight → The Nasdaq fell into correction territory as trade war concerns intensified, with major indexes declining and investors fearing economic strain from escalating tariffs. Companies with global supply chains, including automakers and tech firms, saw sharp losses, while inflation worries and slowing growth raised expectations of Federal Reserve rate cuts. The market reaction underscores uncertainty about how tariffs will impact corporate profits, trade relationships, and broader economic stability.

 

Key Insight → Nvidia’s nearly 9% stock drop, erasing $265 billion in value, signals market concerns over the impact of Trump’s tariffs on its supply chain and production costs. While most of its chips are made in Taiwan, components manufactured in Mexico and Canada could face new duties, adding uncertainty to its operations. The broader market sell-off highlights investor fears that escalating trade tensions could slow economic growth and disrupt key industries, including tech and AI, where Nvidia plays a dominant role.

 

Key Insight → Trump’s new tariffs are likely to raise costs for American businesses and consumers, as companies pass on higher import fees through increased prices on everyday goods, from food to electronics. The move also escalates global trade tensions, prompting retaliatory tariffs from Canada, Mexico, and China, which could disrupt supply chains and further destabilize markets. With the stock market already reacting negatively, the broader economic impact may include slowed growth, inflationary pressures, and uncertainty for industries reliant on global trade.

 

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THE MARKETS

Here’s how the major indexes did yesterday:

Here’s how The Magnificent Seven did yesterday:

Here’s how Bitcoin and Ethereum did yesterday:

Disclaimer: This content is not intended as financial guidance. The purpose of this newsletter is purely educational, and it should not be interpreted as an encouragement to engage in buying, selling, or making any financial decisions regarding assets. Exercise caution and conduct your own research before making any investment choices. 

 

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