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📈 Apple's 15% Tariff Surge
Nvidia stock soars on surprising China news, United and Microchip Technologies lead reversals on tariff pause, Prada cuts Versace purchase price, KKR outbids to secure $2.9B Karo Healthcare deal, Apple has best day since 1998
Evelio Silvera
April 10, 2025
Good morning…
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We have some exciting news to share with you… The Investor Lookout has joined forces with Bull Street.
Every weekday morning, you will receive the latest market and crypto insights from our friends at Bull Street.
Below is today’s edition of the Bull Street Daily Briefing…
⚡ The Fast Five → Nvidia stock soars on surprising China news, United and Microchip Technologies lead reversals on tariff pause, Prada cuts Versace purchase price, KKR outbids to secure $2.9B Karo Healthcare deal, Apple has best day since 1998
🔎 Market Trends → Wall St rebounds sharply after Trump announces 90-day tariff pause; US Futures Sink on Trade War Escallation
And now…
⏱️ Your 5-minute briefing for Thursday, April 10, 2025:
MARKET BRIEF
Before the Open
As of market close 04/09/2025.
Pre-Market
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Fear & Greed
Markets in Review
Markets Soar as Trump’s Tariff Pause Sparks Relief Rally
The Nasdaq surged 12% to 17,125, while the S&P 500 jumped 9.5% to 5,456.9. The Dow climbed 7.9% to 40,608.5, snapping a four-day slide. All sectors finished higher, with tech soaring 14% to lead the rebound.
The Big Picture:
Markets caught fire Wednesday after President Trump announced a 90-day pause on new tariffs for countries that haven't retaliated. A reduced 10% rate will apply during negotiations, offering investors a critical dose of clarity amid a fog of trade tension.
Even as China faces a 125% tariff hike, the tone from Washington turned more diplomatic. Investors responded with broad enthusiasm, sending mega-cap tech stocks soaring and reigniting appetite for risk.
Bond yields jumped as investors rotated back into equities. The 2-year Treasury yield rose 19 basis points to 3.93%, while the 10-year climbed 8.3 basis points to 4.34%. Crude oil surged 4.9% to $62.51, a sign of renewed confidence in global demand.
Market Movers:
Nvidia (NVDA) exploded 18.7%, leading the Dow as AI momentum and tariff relief powered optimism.
Apple (AAPL) gained 15.3%, while Meta (META) and Amazon (AMZN) climbed 14.8% and 12%, respectively, on hopes of margin protection from eased tariffs.
Delta Air Lines (DAL) rallied 23% after beating earnings expectations, despite not reaffirming full-year guidance.
What They’re Saying:
“This was the news we and everyone on Wall Street was waiting for,” said Wedbush Securities, noting that “China remains the biggest wild card” as negotiations begin.
WHAT WE’RE WATCHING
Events
Today: Bureau of Labor Statistics - Core Consumer Price Index (CPI) m/m, Consumer Price Index (CPI) m/m, Consumer Price Index (CPI) y/y - 8:30am
Why You Should Care: Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.
Today: Department of Labor - Unemployment Claims - 8:30am
Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
Earnings Reports
Today: Walgreens, CarMax, Lovesac, Kirkland's
Tomorrow: J.P. Morgan Chase, Wells Fargo, Progressive, BlackRock
MARKET BRIEF
Leading News
Tariff Timeout: Apple's Supply Chain Gambit Pays Off in Markets
Photo Credit: Wes Hicks
Why it matters:
Trump's surprise 90-day tariff pause just handed Apple investors a historic rally, signaling potential relief for tech's supply chain anxieties while offering a rare entry point for long-term value hunters.
Zoom Out:
The market's emotional pendulum swung dramatically yesterday as Apple (AAPL) shares surged 15% — their best single-day performance since the Clinton administration. This wasn't mere algorithmic exuberance but a rational recalibration after four days of unwarranted punishment.
President Trump's calculated 90-day "reciprocal tariff" pause specifically benefits Apple's diversified manufacturing footprint in Vietnam, India and Thailand. While China still faces 125% tariffs (up from 54%), Apple's years-long supply chain diversification strategy suddenly looks prescient rather than paranoid.
Key Insights:
Supply chain resilience pays dividends: Apple's foresight in gradually shifting production beyond China's borders now offers operational flexibility worth hundreds of billions in market cap. The tariff reduction from 46% to 10% for Vietnam and from 26% to 10% for India creates breathing room for margin protection.
$3 trillion valuation beckons again: Yesterday's rally added over $400 billion to Apple's market cap, bringing it within striking distance of the coveted $3 trillion mark. For perspective, this single-day gain exceeds the entire valuation of giants like Netflix or Coca-Cola.
May 1st catalyst approaching: Tim Cook's upcoming earnings call presents a crucial inflection point where management can outline concrete strategies for navigating the evolving tariff landscape — potentially stoking further confidence.
Market Pulse:
"When others are fearful about tariffs, look for companies with the scale and flexibility to adapt. Apple's rally isn't just about the 90-day pause — it's about recognizing which companies can weather policy storms," notes veteran tech analyst Gene Munster.
Bull’s Take:
Savvy investors should view any pullback from yesterday's surge as a potential buying opportunity. Apple's combination of fortress balance sheet, supply chain adaptability, and ecosystem stickiness creates a rare margin of safety even amid trade uncertainties.
Headlines
Surprising China news sends Nvidia stock surging (link)
United Airlines, Microchip Technology lead the stocks posting 20%-plus reversals on Trump tariff pause (link)
Prada cuts Versace purchase price by $200mn after Trump tariffs (link)
KKR Outbids Competitors To Secure $2.9 Billion Karo Healthcare Takeover (link)
Microsoft says it’s ‘slowing or pausing’ some AI data center projects, including $1B plan for Ohio (link)
Amazon pulls the plug on china orders, leaving vendors in the lurch (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to litcapital
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