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☕️ GM Munchers! This is Pip Munch, your trading sidekick. The markets are so red right now I had to double-check I wasn’t looking at my bank account after Valentine’s Day shopping.

On today’s menu:

• ⚡ Stocks Dive for 4th Straight Day—What Traders Need to Know

• 🚨 Tesla Tanks 8%—What’s Next for Musk & Markets?

• 🇺🇦 Ukraine Agrees To A US Minerals Deal

• 🤑 Warren Buffett Invests In Japan

MARKET UPDATE

⚡ Stocks Dive for 4th Straight Day—What Traders Need to Know

Four days. 

That’s how long the market has been taking punches like a washed-up boxer who forgot to duck.

The S&P 500 and Nasdaq just clocked in their fourth straight losing session, with the S&P 500 and the Nasdaq both down 0.5%.

And no, it’s not just because it’s Tuesday — the market’s carrying more baggage than a family of five at the airport.

If you’re wondering “Why the doom and gloom?”—pull up a chair.

Let’s break it down.

📉 What’s Dragging Stocks Lower?

1. Consumer Confidence is in the Gutter

Investors were hoping for some good news on the U.S. consumer front — you know, the people who keep the economy running by swiping their credit cards like there’s no tomorrow.

But instead, we got a disappointing consumer confidence report that basically said, “We’re not feeling it.”

When consumer confidence drops, it usually means less spending, slower growth, and, yep, recession fears creeping back in.

2. Trump’s Tariffs Are Back Like a Bad Sequel

Just when we thought we were done talking about tariffs, Trump dusts off his favorite economic weapon.

He confirmed that 25% tariffs on Canadian and Mexican imports will go into effect next month, despite last-ditch efforts to negotiate.

🔑 Trade wars = bad for business.

Markets hate uncertainty, and new tariffs could hurt everything from manufacturing to retail, driving up prices and squeezing profits.

3. Inflation is Still the Unwanted Guest at the Party

Despite some rate cut optimism earlier this year, inflation is hanging around like that guy at a party who showed up uninvited, finished all the snacks, and still refuses to leave.

Persistent inflation is keeping the Federal Reserve in a holding pattern, making traders nervous that rate cuts might be further away than they hoped.

The market was this close to convincing itself that cuts were coming soon, but now?

Doubt is creeping back in.

🧠 What Traders Should Watch Next

• Tariff Fallout: If these new tariffs go into effect, expect more volatility. Companies with big international exposure (think automakers, tech, and retail) could take more hits.

• Consumer Spending Data: The next few data points on spending and retail sales will be crucial. Weak spending means weaker growth — not great for stocks.

• Fed Talk: Any new comments from Jerome Powell or Fed officials could sway the market. Traders are watching like hawks for any clues on rate cuts (or the lack thereof).

💡 The Big Picture

The market’s been skating on thin ice for weeks, balancing between optimism and panic.

Right now?

It’s leaning hard into panic mode. ❌

Inflation, tariffs, weak consumer data — it’s a recipe for more volatility.

But here’s the silver lining: volatility is our best friend. 

This kind of market is where smart traders thrive.

While long-term investors are sweating bullets, traders who can navigate the swings are licking their chops.

So, what’s the game plan?

Stay nimble, trade the setups in front of you, and keep an eye on the macro noise — because it’s not going away anytime soon.

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STOCKS

🚨 Tesla Tanks 8%—What’s Next for Musk & Markets?

Well, that escalated quickly.

Tesla shares took a nosedive yesterday, sinking over 8% and dragging its market cap below the $1 trillion mark for the first time since November.

That’s a cool $100 billion gone in a flash — the kind of money Elon Musk probably has lying around in his glove compartment.

And if that wasn’t bad enough, Tesla’s now erased nearly all the gains it made after Trump’s election win in November. Insert sad violin music here.

But what the heck happened?

⚡ What Sparked the Selloff?

A perfect storm of bad news, that’s what:

1. Disappointing Tech Rollouts in China 🇨🇳 

Reuters dropped a bombshell on Monday, reporting that Tesla’s long-awaited upgrade to its partially automated driving system in China left customers... unimpressed.

Turns out, drivers aren’t thrilled about a feature that was supposed to “navigate on city streets” but can barely handle a left turn.

2. Inflation, Interest Rates & Tariffs — Oh My! 😬 

Let’s zoom out. The market’s already on edge thanks to persistent inflation, interest rate uncertainty, and the looming threat of a trade war.

Trump confirmed that 25% tariffs on Canadian and Mexican imports are set to kick in next month.

Investors are sweating bullets, and Tesla’s international exposure makes it especially vulnerable to tariff tantrums.

3. Elon’s Side Hustles Aren’t Helping 🏃

Oh, and while Tesla’s in meltdown mode, Elon Musk is busy playing politics.

Reports suggest he’s spending more time in Washington leading Trump’s Department of Government Efficiency (aka DOGE) than focusing on, you know, running Tesla.

That’s not exactly instilling confidence in investors.

📉 Tesla’s Pain is the Market’s Gain… or Not

Tesla’s plunge didn’t happen in a vacuum. The broader market felt the heat too:

• S&P 500 dropped for the 4th straight day, down 0.5%.

• Nasdaq also tumbled 0.5% but was down over 1% at one point.

• Meanwhile, the Dow pulled a sneaky green close, up 0.37%, but don’t let that fool you — the market’s jittery.

The fear?

Inflation is sticking around like that one friend who refuses to leave your house after the party’s over.

Consumer confidence is dropping, the Fed is still playing coy about rate cuts, and the market is reacting like a toddler being told no.

🚀 What Happens Next?

• For Tesla:

It’s at a crossroads.

If confidence in Elon continues to erode and the trade war escalates, we could see more downside.

But — and this is a big but — Tesla still holds massive brand power, and the EV market isn’t going anywhere.

The bulls are eyeing support levels around $300, but if that cracks, it could get uglier.

• For the Market:

Tesla’s slump is a microcosm of a jittery market grappling with too many “what ifs.”

Inflation, interest rates, tariffs, tech rollouts — it’s all adding up.

Traders are playing defence, and the risk-off sentiment is spreading like wildfire.

💡 Final Thoughts

Tesla’s rough day is a reminder of how interconnected everything is.

One company’s misstep, mixed with a dash of macroeconomic uncertainty, and bam — $100 billion gone.

🚀 Pre-Market Fuel

1. Ukraine agrees to a US minerals deal. At this point, it seems like the market is going to fully price in an end to the war.

2. Apple decides to keep its DEI program. Go woke, go broke… But the stock has barely moved this week.

3. Warren Buffett invests in Japan. He continues to hold a record amount of cash on Berkshire’s balance sheet.

🍪 Munchy Memes

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