The Basics of US ETFs: What You Need to Know

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So, you’re intrigued by the idea of investing in US Exchange Traded Funds (ETFs)? Excellent choice! As we discussed before, ETFs can be a fantastic entry point into the world of investing, especially for newcomers. But before diving in, it’s crucial to lay a solid foundation by understanding the fundamental principles of these versatile investment … Read more

10 Essential Japanese Phrases for English Speakers to Learn First

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Embarking on the journey of learning Japanese can feel like stepping into a whole new world, filled with intriguing characters and unique sounds. While the prospect might seem daunting at first, starting with a set of fundamental phrases can provide a solid foundation and a boost of confidence for English speakers. These essential expressions will … Read more

Why US ETFs Are Perfect for New Investors

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Embarking on your investment journey can feel like navigating a complex maze filled with unfamiliar terms and daunting decisions. Where do you even begin? Amidst the myriad of investment options, US Exchange Traded Funds (ETFs) stand out as a beacon for novice investors, offering a potent blend of simplicity, diversification, and accessibility. If you’re just … Read more

Diving In: A Beginner’s Guide to Understanding Japanese Culture in 2025

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So, you’re intrigued by Japan. The neon glow of Tokyo, the serene temples of Kyoto, the meticulous art of sushi – it all paints a captivating picture. But beneath the surface of technological marvel and breathtaking landscapes lies a rich tapestry of traditions, values, and social nuances that can feel both alluring and a little … Read more

How to Start Learning Japanese from Scratch: A Beginner’s Guide

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Japanese, a language woven with a unique writing system, intricate grammar, and a rich tapestry of culture, beckons learners from across the globe. The allure of anime, the captivating narratives of dramas, the melodic strains of J-pop, and the exquisite artistry of its cuisine have ignited a global fascination, leading many to embark on the … Read more

U.S. Market Wrap-Up: May 16, 2025

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U.S. Market Wrap-Up: May 16, 2025 1. Market Overview: U.S. stock markets experienced a strong rally on May 16th, overcoming morning weakness to close significantly higher. The positive shift was largely attributed to emerging optimism surrounding potential progress in trade discussions between the United States and Europe. This development helped to ease concerns about escalating … Read more

U.S. Market Wrap-Up: May 15, 2025

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U.S. Market Wrap-Up: May 15, 2025 1. Market Overview Today, U.S. stock markets showed a mixed performance. While the S&P 500 and Dow Jones indices recorded gains, the Nasdaq Composite saw a slight decline. The market did not lose its upward trend entirely but the momentum was not very strong, particularly for technology stocks. A … Read more

U.S. Market Wrap-Up: May 14, 2025

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U.S. Market Wrap-Up: May 14, 2025  1. Market Overview Today, U.S. stock markets once again showed a mixed performance, following a similar pattern to yesterday. While the Dow Jones and Russell 2000 indices declined, the S&P 500 edged up slightly, and the Nasdaq continued its upward trend driven by strong technology stocks. In the absence … Read more

U.S. Market Wrap-Up: May 13, 2025

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U.S. Market Wrap-Up: May 13, 2025 U.S. stock markets presented a mixed picture on Tuesday. A strong rally in technology stocks, fueled by optimism surrounding President Trump’s visit to Saudi Arabia and significant investment agreements, propelled the Nasdaq and S&P 500 higher. However, the Dow Jones Industrial Average declined, heavily impacted by an unprecedented plunge … Read more

U.S. Market and Economic Update: April 30, 2025

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U.S. Market and Economic Update: May 1, 2025
  1. Stock Market Overview
  • Major Indices:
    • Dow Jones: Up 0.35%, closing at 4,667.64 (+140 points). Seventh consecutive day of gains.
    • S&P 500: Up 0.14%, closing at 5,568.96 (+2.39% from daily low).
    • Nasdaq: Up 0.08%, closing at 17,446.34 (+2.78% from daily low).
    • Russell 2000: Down 0.90%, closing at 1,958.79 (+1.71% from daily low).
  • Volatility Index (VIX): Peaked at 28 early, closed at 25.23 (-10% from high), signaling reduced fear.
  • Market Dynamics: Early sell-off triggered by GDP contraction (-0.3%) and tariff uncertainties. Late recovery driven by strong consumer data, stable inflation, anticipated Fed rate cuts, and robust Big Tech earnings (Microsoft, Meta). Approximately 2,708 stocks rose, 3,522 fell, reflecting balanced but optimistic sentiment.
  1. Economic Indicators
  • GDP: Contracted by 0.3%, first negative growth since Q1 2022 (reported March 31, 2022).
    • Causes: Import surge (trade deficit +41.3%) due to pre-tariff stockpiling, government spending down 1.4%.
    • Analysis: Excluding imports, real GDP estimated at ~3% growth.
    • Trump Administration: Attributes downturn to Biden’s legacy, claims tariff benefits pending.
  • Consumer Metrics:
    • Personal Income: Expected 0.4%, actual 0.5% increase.
    • Personal Consumption: Expected 0.5%, actual 0.7% increase.
  • Inflation: Core PCE flat (below 0.5% forecast, <0.1% rise). Year-over-year core inflation at 2.6%, supporting disinflation.
  • Employment: ADP private payrolls at 62,000 (half of March levels), with declines in education and healthcare.
  • Fed Rate Cut Expectations:
    • June (4–4.25%): 63.7% probability.
    • July (3.75–4%): 57% probability.
    • September (3.75%): 54.5% probability.
    • October (3.25–3.5%): 41.9% probability.
    • Weak GDP boosts rate cut odds, fueling market optimism.
  1. Bonds, Currencies, and Commodities
  • Bonds:
    • 10-Year Treasury Yield: Down 2 basis points to 4.14%.
    • 2-Year Yield: Down 6 basis points to 3.5% (-1.67%).
    • Safe-haven demand rose amid economic uncertainty.
  • Dollar Index: Up 0.42%, closing at 99.43.
  • Commodities:
    • Crude Oil (Brent): Down 3.73%, at $60.90 per barrel.
    • Gold: Down 0.89%, at $3,304 per ounce.
    • Tariff and recession fears drove safe-haven flows to bonds and dollars.
  • Cryptocurrencies:
    • Bitcoin: Down 1%, at $94,000.
    • Ethereum: Down 2%.
  1. Sector and Stock Performance
  • Big Tech:
    • Microsoft: Up 5.49% after hours. EPS $3.46 (+$0.24 vs. consensus), revenue $700B (+$16B). Cloud ($268B, +21%), productivity ($299B, +10%) outperformed. Adjusted Open AI partnership to reduce supply obligations.
    • Meta: Up 4.59% after hours. EPS $6.43 (+$1.21), revenue $423B (+$9.5B). DAU 3.43B (+6%), ad revenue +10%. Q2 guidance $425–455B, capex $640–720B.
    • Qualcomm: Down 5% after hours. Revenue +15%, EPS $2.85, but guidance ($99–107B) missed consensus.
    • Apple: Up 0.56%, earnings due May 2. Analyst (Tim Long, Barclays) warns of H2 demand slowdown.
    • Amazon: Down 1.58%, earnings due May 2.
    • Tesla: Down 3.38%, recovered 3.79% from low ($270). RSI 58, held 5/15/50-day MAs ($278/264). Short interest down to 49.45%.
    • Nvidia: Flat, held 50-day MA ($108). CEO Jensen Huang: China’s AI “right behind” U.S., praises Huawei’s progress.
    • Alphabet: Antitrust lawsuit ongoing, CEO Sundar Pichai testifies. Negotiating Gemini AI integration with Apple.
  • Defensive Stocks: Visa (+1%), Mastercard, pharma (Novo Nordisk), telecom (AT&T, +2%), Booking Holdings (strong earnings) outperformed.
  • Healthcare: Humana (+1%, lower medical costs), GE Healthcare (+3%, lowered guidance).
  • Energy: Weak due to oil price drop.
  • Solar: First Solar down 8%, tariff headwinds.
  • Starbucks: Down 5.68%, weak earnings despite new CEO Brian Niccol.
  • Robinhood: Down 3% after hours, rising costs ($2.185B).
  • Nike: Wells Fargo bearish, $70/share valuation.
  • Caterpillar: Q1 revenue $14.05B (below expectations), global sales down.
  • Automakers: Ford (-1.38%), Lucid (-1.95%), Toyota (-2%). Tariffs may add $10,000 per vehicle.
  • Snap: Down 12%, ad revenue outlook weak, Wall Street cuts price targets.
  • Semiconductors: TSMC, ON Semiconductor, ARM, Broadcom (+0.68%) rebounded. SMCI down 13.5% (weak Q3).
  1. Tesla Highlights
  • Decline Drivers: GDP contraction, tariff uncertainty, weak auto sector. Tariffs may favor Ford, GM, Stellantis.
  • Positive Developments:
    • Cybertruck Rear-Wheel Drive ($6,900) set for mass production at Giga Texas.
    • Cybercab platform installed, capable of 300 units.
    • Humanoid Robot (Optimus): Morgan Stanley’s Adam Jonas forecasts 1B units sold by 2050, $5T market.
    • Elon Musk completes DOGE role (cut $160B in government spending), praised by Trump, set to focus on Tesla.
  1. Trump Administration and Policy
  • GDP Stance: Blames Biden, claims tariff benefits pending. Predicts “boom” once “Biden’s traces” erased.
  • Tariff Policy:
    • Downplays inflation fears, claims shelves won’t empty. China negotiations ongoing.
    • Treasury Secretary Scott Bessent: $250M in corporate investments secured, pharma returning to U.S.
    • USTR Jamie Singla, Peter Navarro: India tariff talks nearing conclusion.
    • Ukraine-Hitachi deal near finalization (Bloomberg).
  • Cabinet Meeting: Musk’s DOGE role saved $160B, Trump encourages Tesla focus.
  • Regulatory Outlook: Nvidia CEO urges AI export rule relaxation.
  1. Wall Street and Expert Insights
  • Morgan Stanley: Warns of stagflation risks.
  • Wells Fargo: Sees robust demand but limited recovery potential.
  • Bloomberg Economics: GDP hit by pre-tariff orders, Q2 recovery unlikely.
  • Democrats (Chuck Schumer): Criticize Trump’s policy failures, demand team overhaul.
  1. Other Developments
  • Waymo-Toyota: Partnering on autonomous vehicles.
  • Upcoming: Apple, Amazon earnings (May 2), Manufacturing PMI.

Conclusion: Markets overcame a GDP-driven sell-off (-0.3%) with strong consumer spending, stable inflation, Fed rate cut hopes, and stellar Big Tech earnings (Microsoft, Meta). Tesla and autos faced tariff pressures but held technical levels, with Cybertruck and Optimus as growth catalysts. Trump deflects economic blame to Biden, touting tariffs and investments. Markets remain resilient, eyeing further earnings and Fed moves.