Tech Slammed by Tariffs, Powell Warns of Economic Tension, Optimism Builds for Trade Progress
Hey OP! After yesterday’s tech-led sell-off triggered by Nvidia’s export-related charges, markets are trying to stabilize. Today we’ve got a packed lineup of economic data, earnings, and trade updates — and we’re capitalizing with our systems as always. Here’s what you need to know:
1. Tech Hit Hard as NVDA Faces $5.5B Tariff Fallout
Wednesday’s session closed with sharp losses across all major indices, driven by a ~3% drop in the $QQQ tech index. The selloff was sparked by Nvidia’s disclosure of a $5.5B charge tied to new U.S. export restrictions on its H20 AI chips to China.
- $QQQ fell from ~458 down to 451, and sentiment remains bearish.
- Powell warned that tariffs could trigger inflation and stall growth, calling it a “tough balance” between controlling prices and supporting the economy.
Key QQQ Levels:
- Support: 438 (critical); below this, expect tests of 420–400 range
- Resistance: 465, 468 (must reclaim for trend reversal)
2. Markets Eye Trade Progress as Global Talks Intensify
Despite recent turmoil, optimism is building that the U.S. and major trading partners may negotiate tariff concessions. Trump signaled “big progress” with Japan — the first to engage directly with the U.S. under his new tariff regime.
- Smartphone and PC imports were exempted from tariffs over the weekend
- EU’s von der Leyen said she wants to “give negotiations a chance”
- Bloomberg reports China is open to talks — if U.S. rhetoric toward Chinese officials tones down
Bottom Line: A full-blown global trade war might still be avoidable. Traders are watching headlines closely.
3. Strong TSMC Earnings, But Caution on Tariffs
TSMC reported a massive 60% YoY profit surge driven by AI chip demand, and sees Q2 revenue rising up to 38% YoY. But management warned of “uncertainties” related to U.S. tariffs despite no immediate customer pullback.
4. ECB to Cut Again as Europe Feels Tariff Heat
The ECB is expected to cut rates for the 7th time in a year today as tariffs weigh on EU economic projections. Inflation is softening, and growth forecasts have been slashed. ING called it an “insurance cut” to shore up confidence amid rising disinflation risks.
5. Oil, Gold, and Bitcoin React to Tariff Shifts
- Crude oil rose for the first weekly gain in three weeks, fueled by new U.S. sanctions on Chinese entities buying Iranian oil
- Gold hit a record, blasting above $3,300/oz as traders seek safe-havens
- Bitcoin gained, tracking improving sentiment around trade negotiations
6. Other Headlines Moving Markets
- Temu & Shein warn of price hikes due to the end of the sub-$800 import tax break
- Meta anti-trust trial continues, with former COO Sheryl Sandberg now testifying
- Lyft acquires FreeNow to expand into Europe in a $200M deal
- NYC beer deliveries stall as union workers strike over pension benefits
7. Today’s Key Economic Data (ET)
🇺🇸 8:30AM: Philly Fed Mfg. Index (Apr), Jobless Claims, Building Permits, Housing Starts
🇺🇸 10:30AM: Atlanta Fed GDPNow (Q1)
🇺🇸 11:45AM: Fed Vice Chair Barr Speaks
🇺🇸 1:00PM: Baker Hughes Rig Count, 5Y TIPS Auction
8. OP Trade Alert: INTC Calls + Long-Term LEAPs
Today, I plan to alert a play on INTC calls, and I’ll be adding to my cost-free LEAP position (March 2025). The setup is aligning well after recent pressure, and the reward/risk looks solid from here.
Quick Note on HTZ:
We saw a monster move from $HTZ yesterday after Bill Ackman’s Pershing Square revealed a major stake. The stock surged over 100% from the lows. I’m not including it in today’s top 5 plays due to the risk of chasing. If you caught it from the late March alerts — well done.
Let’s keep stacking. With trade noise driving volatility and our systems dialed in, the edge is ours.
See you in chat with upgrades, downgrades, and play breakdowns.
— Team OptionsPlayers
Stack Your Gains.
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