After stock market indices fell by 10% to enter correction territory, it started to rise for several trading sessions. Speculators bet that Trump would not make good on his tariff threat. Unfortunately, tariffs on foreign automobile firms start on April 2.
The protectionist policy helps domestic firms. Market participants bought back U.S. dollars (DXY) but dumped U.S. Treasury bonds. The 20+ Year Treasury Bond ETF (TLT) lost 2.2% in the last week. Instead, investors added to their gold position. Bitcoin (BTC-USD) also bounced back, closing at $87,300.
Although firms like GameStop (GME) are pivoting their business to buy Bitcoin with their cash on hand, GME stock is not a buy. Investors may bypass the intermediary by holding Bitcoin ETFs (IBIT). Coinbase (COIN) is also a better holding. If investors trade cryptocurrency more actively, the Coinbase platform will collect more transaction fees.
Tesla on Watch
After a 35% quarterly drop in its stock price, the bounce from $230 to nearly $300 risks ending. The sell-off in Tesla (TSLA) stock may resume. The European Automobile Manufacturers’ Association (ACEA) reported Tesla's new vehicle registrations fell by 40% Y/Y.
Dollar Stores Struggle
On Wednesday, Dollar Tree (DLTR) projected comparable sales growth of between 3% and 5% in 2025. Customers continued to struggle with their weak purchasing power. In response, the firm shrank its business. It will sell the Family Dollar business for $1.01 billion.
