Trump Reverses Course on Tariffs

President Trump has abruptly suspended many of the tariffs he imposed on imports from Canada and Mexico just two days earlier, citing trade rules under the U.S.-Mexico-Canada Agreement (USMCA). Trump previously justified the tariffs as a measure to curb drug trafficking and illegal immigration but later acknowledged pressure from automakers, granting them a temporary reprieve. However, he hinted that new tariffs on Canadian and Mexican goods would still take effect in April. The move has not calmed financial markets, which have been rattled by Trump's broader trade war, including fresh 10 percent tariffs on Chinese imports. The S&P 500 fell 1.8 percent on Thursday, adding to a week-long slide. Meanwhile, Canada retaliated with tariffs on $20.5 billion in U.S. goods, and Mexico signaled plans to impose its own levies if the U.S. did not ease restrictions. Despite the economic turbulence, Trump defended his policies, arguing that foreign nations had long exploited the U.S. and that his approach would ultimately strengthen the American economy.

Sources: The New York Times

Wall Street Slumps as Tariff Uncertainty Shakes Markets

U.S. stock markets resumed their downward slide on Thursday, with the S&P 500 falling 1.8%, the Dow Jones dropping 427 points, and the Nasdaq sinking 2.6% following Trump’s tariff reversal. The semiconductor sector was hit particularly hard, with Marvell Technology plunging nearly 20% and Nvidia dropping 5.7%, as AI-driven stock valuations come under pressure. Retailers also struggled, reporting weaker-than-expected forecasts, raising concerns about consumer spending. Global markets showed mixed reactions, while China signaled it would resist U.S. trade pressures. Investors now await Friday’s U.S. jobs report, a key indicator of economic stability amid fears of a slowdown.

Sources: Associated Press

Trump Establishes Strategic Bitcoin Reserve Ahead of Crypto Summit

President Donald Trump signed an executive order on Thursday to establish a Strategic Bitcoin Reserve, alongside a U.S. Digital Asset Stockpile to hold other cryptocurrencies. The Treasury Department will manage the reserve, which will be funded using Bitcoin seized in criminal and civil asset forfeitures. Trump cited Bitcoin’s fixed supply as a strategic advantage for the U.S. government. The executive order also mandates a full accounting of the government’s digital assets, with White House AI and cryptocurrency czar David Sacks estimating holdings at around 200,000 BTC, valued at approximately $17.5 billion. The move marks a stark contrast to the Biden administration’s cautious approach to crypto regulation and comes just before Trump hosts the first-ever White House crypto summit. However, critics argue that cryptocurrency's value is unstable and question the practicality of a federal Bitcoin reserve.

Sources: CNN

SpaceX Catches Booster Again, Starship Fails as Upper Stage Breaks Apart in Flight

SpaceX’s eighth test flight of the Starship megarocket ended in failure Thursday as the vehicle's upper stage spun uncontrollably and broke apart after reaching space. The launch, conducted from Starbase in Boca Chica, Texas, successfully tested the Super Heavy booster’s return and catch using the launch tower’s "chopsticks", but the upper stage failed before completing its planned reentry experiments. The Federal Aviation Administration (FAA) has launched a mishap investigation, requiring SpaceX to determine the root cause and propose corrective actions. This failure follows a similar loss during Starship’s seventh test in January, despite SpaceX making design and operational adjustments. The debris from the disintegrated upper stage fell into the ocean, prompting temporary airspace restrictions over Florida.

Sources: Fox Business

Costco Stock Drops After Earnings Miss

Costco Wholesale’s fiscal second-quarter earnings narrowly missed Wall Street expectations, sending its stock down 1.4% in after-hours trading on Thursday. The retailer reported earnings of $4.02 per share, falling short of the projected $4.09 per share, though revenue of $63.7 billion exceeded estimates. Same-store sales growth of 6.8% outpaced forecasts of 6.4%, but concerns over rising tariffs and market volatility may have contributed to the stock’s decline. The company’s high valuation—trading at 55 times next year’s expected earnings—set an exceptionally high bar for performance, making even a slight earnings miss significant. CEO Ron Vachris acknowledged uncertainty around the full impact of President Trump’s 25% tariffs on Mexican and Canadian imports and a 10% levy on Chinese goods, noting that Costco will work to minimize cost increases for members. Despite concerns over potential price hikes, analysts highlight Costco’s strong membership-driven business model as a key advantage in an inflationary environment.

Sources: Barron’s