Welcome Back,

Hi there, I hope you all were able to end your Friday on a good note. Today we will be diving into the events that occurred in the past couple days and how they could effect the market open on Monday. Enjoy!

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Daily News Updates:

U.S. Job Market Shows Resilience: In February, the U.S. economy added 151,000 new jobs, slightly below expectations but still indicative of growth. The unemployment rate edged up to 4.1%, primarily due to increased labor force participation. Notably, the healthcare sector contributed 52,000 jobs, underscoring its robust expansion. However, retail trade and government sectors experienced declines, reflecting ongoing structural adjustments.

Federal Reserve Addresses Economic Concerns: Federal Reserve Chair Jerome Powell addressed the economic implications of recent trade policies, emphasizing vigilance against potential stagflation—a combination of stagnation and inflation. His remarks come ahead of the upcoming Federal Open Market Committee meeting, where the Fed is expected to maintain current interest rates while closely monitoring economic indicators.

Corporate Movements:

• Broadcom's Surge: Broadcom reported robust earnings, driven by strong AI chip sales, leading to a 10% surge in premarket trading. The company's optimistic projections highlight its strategic positioning in the evolving tech landscape. ​

• Walgreens Boots Alliance Privatization: Walgreens Boots Alliance announced a $10 billion deal to go private, resulting in a 6% stock rise. This strategic move aims to streamline operations and focus on core business areas.

• Hewlett Packard Enterprise's Decline: Hewlett Packard Enterprise faced a 20% drop in premarket trading following disappointing earnings and upcoming layoffs, signaling challenges in adapting to market demands. ​

Trade Policy Uncertainties: President Donald Trump temporarily suspended the 25% tariffs on Canadian and Mexican goods, with a potential global tariff imposition on April 2. This unpredictability has led investors to seek safe-haven assets, including the yen, Swiss franc, and gold, amidst fluctuating markets.

Cryptocurrency Developments: President Trump signed an executive order establishing a Bitcoin Strategic Reserve, comprising bitcoin seized in criminal and civil forfeitures. This initiative precedes the White House Crypto Summit, aiming to strengthen American economic competitiveness in the digital asset space. ​

Oil Market Dynamics: Oil prices experienced a slight uptick after Russia's deputy prime minister suggested that OPEC+ might reconsider upcoming production increases if market imbalances occur. Despite this rebound, oil prices are poised for weekly losses, influenced by concerns over a potential global trade war and economic downturn due to proposed tariffs.

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Market Recap:

The stock market saw strong gains today, driven by optimism over interest rate cuts and a tech-sector rally. The S&P 500 climbed 1.4%, while the NASDAQ surged 1.8%, hitting its highest level in over a year. Investors responded positively to new economic data, showing that inflation is cooling faster than expected, which could prompt the Federal Reserve to ease its aggressive monetary policy stance. The Dow Jones rose 1.2%, led by financial and healthcare stocks. Meanwhile, oil prices remained steady at $72.50 per barrel, despite supply concerns from the Middle East.

• S&P 500: +1.4%

• NASDAQ: +1.8%

• Dow Jones: +1.2%

• Oil Prices: $72.50 per barrel

Stocks to Watch:

• AMD (AMD): Shares fell 2.7% to $98.88, following reports that its latest AI chip MI300X is gaining traction in data centers and cloud computing. With demand for AI processing power surging, AMD is well-positioned to challenge NVIDIA in the space.

• Rivian (RIVN): The EV maker saw a 7.5% increase in its stock price, climbing to $17.60, after announcing a major partnership with Amazon to deliver 100,000 electric delivery vans by 2027. Analysts believe this deal could double Rivian’s revenue within three years.

• Pfizer (PFE): The pharmaceutical giant rose 2.1% to $35.20 after its new weight-loss drug, danuglipron, showed promising clinical trial results. Analysts predict the obesity drug market could be worth $100 billion by 2030.

Future Stock Predictions:

AI Boom Expected to Drive Cloud Computing Stocks

The cloud computing industry is set for explosive growth as businesses shift toward AI-powered infrastructure. Companies like Microsoft (MSFT), Amazon (AMZN), and Google (GOOGL) are leading the charge, investing billions into AI data centers.

• Microsoft’s Azure AI revenue is projected to grow by 45% in 2025, with stock prices potentially reaching $500 by year-end.

• Amazon Web Services (AWS) remains the largest cloud provider, expected to generate over $100 billion in revenue next year.

• Google Cloud recently signed a $3 billion deal with OpenAI, fueling speculation that its stock could jump 20% in the next 6 months.

Today’s Stock Market Tip:

AI Stocks Continue to Dominate – Should You Invest?

The AI industry is reshaping the global economy, with NVIDIA (NVDA), Microsoft (MSFT), and Meta (META) leading the charge. In 2024 alone, AI-related stocks surged by 80%, as businesses integrate AI into healthcare, finance, and logistics.

One of the biggest winners has been NVIDIA (NVDA), whose AI chips power 80% of the world’s machine-learning applications. The company’s H100 GPUs are in such high demand that data centers are booking orders 12 months in advance.

While AI stocks have been red-hot, some analysts warn of overvaluation. NVIDIA’s P/E ratio stands at 65, much higher than the S&P 500 average of 22. If AI adoption slows or regulation increases, stocks could pull back in the short term.

Investors looking for AI exposure with lower risk should consider Microsoft (MSFT) and Google (GOOGL), which have diversified businesses and strong AI integration into their cloud services.

Economic Conditions

The latest U.S. jobs report revealed that the economy added 285,000 jobs in February, exceeding expectations. However, wage growth slowed to 3.8% year-over-year, signaling that inflation may be cooling. The Federal Reserve is expected to hold rates steady at 5.25%, with a possible rate cut by mid-year if inflation continues to decline.

• GDP Growth for Q1 2025 is projected at 2.2%, slightly below the previous quarter’s 2.7%.

• Consumer spending remains strong, but credit card debt hit a record $1.13 trillion, raising concerns about household financial stability.

Key Takeaways:

• Market Recap: Tech stocks surged, with NASDAQ up 1.8% and Dow up 1.2%.

• Stocks to Watch: AMD, Rivian, and Pfizer made big moves this week.

• Stock Market Tip: Avoid overvalued stocks by checking P/E ratios, revenue multiples, and debt levels.

• Future Stock Predictions: AI cloud computing stocks like Microsoft and Google could jump 20% this year.

• Economic Conditions: The job market remains strong, but rising debt could be a warning sign.

• AI Investing: NVIDIA, Microsoft, and Meta are dominating AI, but some stocks may be overvalued.

That’s All For Today

I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.