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Examining the Impact of PCE Inflation on Market Sentiment The U.S. stock market is navigating a stormy period as investors contend with soaring margin debt, impending trade tariffs, and lingering inflation worries. On February 27, 2025, markets plummeted after President Donald Trump revealed plans to slap tariffs on Canada, Mexico, and China starting March 4, sparking widespread sell-offs, particularly in artificial intelligence (AI) stocks. Nvidia, a leading AI beneficiary, delivered strong quarterly earnings but rattled investors with a revenue forecast for the next quarter that fell short of Wall Street’s high hopes, alongside an expected decline in gross profit margins. This triggered an early surge in AI stocks that swiftly turned into profit-taking, deepening losses as trading unfolded. Compounding the tension, climbing inflationary expectations and faltering consumer confidence have stoked fears of an economic slowdown, driving a broader shift toward risk aversion across the mar...

Significant Enhancements in Production and Performance / Reuters Huawei has reportedly improved the production yield of its Ascend 910C AI chip from 20% to nearly 40%, marking a crucial advancement in its commercial viability. This increase in yield indicates a higher percentage of functional chips produced during the manufacturing process, thereby enhancing cost-effectiveness and market competitiveness. Notably, the Ascend 910C is assessed to achieve approximately 60% of the inference performance of Nvidia's H100 GPU, a finding that highlights Huawei's focus on inference tasks rather than training applications. This development suggests a strategic move towards reducing reliance on Nvidia within China's AI applications. The Chinese government is actively encouraging domestic firms to adopt Huawei's AI chips, further bolstering the company’s market share. The progress in production and performance signifies a substantial step towards achieving self-sufficiency in AI co...

Rising market conditions and successful ventures boost Xiaomi's share price Xiaomi's stock has experienced a remarkable surge recently, showcasing a significant increase of over 290% compared to a year ago. This growth can be attributed to favorable market conditions, particularly in the electric vehicle sector, and the company's thriving business operations. On February 21, Xiaomi's stock price rose by 5.19%, reaching HKD 51.70 on the Hong Kong Stock Exchange. This marks a substantial increase from HKD 13.22 a year earlier, reflecting the company's strong market performance. Xiaomi, known for its smartphones and electric vehicles, is benefiting from several key factors driving this growth. One of the major contributors to Xiaomi's success is the Chinese government's recent subsidy program for smartphones priced under 6,000 yuan, which offers consumers a 15% rebate on purchases up to 500 yuan. Xiaomi's flagship models, including the Xiaomi 15 and 15 Pr...

Strengthening Economic Ties with the U.S. Amidst Tariff Challenges / Broomgerg Australian Treasurer Jim Chalmers is set to travel to Washington, D.C., for pivotal discussions with U.S. Treasury Secretary Scott Bessent, focusing on the potential exemption of Australia from the 25% tariffs on steel and aluminum imports that were established during the Trump administration. This move comes in the wake of a recent conversation between U.S. President Donald Trump and Australian Prime Minister Anthony Albanese, wherein Trump expressed openness to considering an exemption, recognizing the significant trade surplus Australia maintains with the U.S. During this visit, Chalmers intends to engage in detailed discussions with Bessent, highlighting the necessity of reinforcing both economic and diplomatic relations between Australia and the United States. Although Chalmers does not foresee the finalization of decisions regarding the tariff exemption during this trip, he perceives the meeting as a ...

Economic Uncertainty and High Mortgage Rates Impact Housing Market / AP Photo/Ross D. Franklin The upcoming spring home-selling season is anticipated to be particularly challenging for major homebuilders, primarily due to the potential for a trade war and persistently high mortgage rates. In recent years, builders have accelerated their construction of new homes to address the shortage in the resale market, driven by high borrowing costs that have discouraged existing homeowners from selling. However, with mortgage rates remaining elevated and economic uncertainty looming, builders are facing significant hurdles. Analysts, such as Rafe Jadrosich from Bank of America Securities, forecast that the difficult environment for homebuilders will likely persist through the first half of 2025. Signs of strain are already becoming evident in the market. For instance, DR Horton, the largest homebuilder in the United States, reported a 1% decline in net orders for the first fiscal quarter, which ...

Remembering the Beloved Actress and Her Enduring Legacy Lynne Marie Stewart, the beloved actress who famously portrayed Miss Yvonne—the "Most Beautiful Woman in Puppetland"—on the cherished children's television series "Pee-wee's Playhouse," has sadly passed away at the age of 78. Stewart's death was confirmed by Cassandra Peterson, known for her role as Elvira, Mistress of the Dark. In a heartfelt tribute shared on Facebook, Peterson described Stewart as "one of the kindest, sweetest, funniest women who ever lived," honoring her memory and iconic status as Miss Yvonne. Born on December 14, 1946, in Los Angeles, California, Lynne Marie Stewart's career spanned decades, marking her as a significant figure in the entertainment industry. Her portrayal of Miss Yvonne in "Pee-wee's Playhouse" (1986–1990) not only made her a household name but also allowed her to reprise the role in various productions, including the 1985 film ...

Billionaire entrepreneur Elon Musk pushes for increased transparency in central banking / AP Photo/Jose Luis Magana Elon Musk has once again sparked discussions about the need for greater scrutiny of the Federal Reserve, stating his intention to push for an audit of the central bank during a recent Conservative Political Action Conference. Although Musk did not provide specific details regarding his plans, he affirmed his commitment to the idea when questioned on stage. This marks the second occasion in February that Musk, who humorously refers to himself as the head of the Department of Government Efficiency (DOGE), has endorsed the notion of examining the Federal Reserve more closely. As an independent agency, the Fed is responsible for setting interest rates and regulating major banking institutions in the United States. Musk’s statements come on the heels of a recent executive order issued by the White House aimed at enhancing oversight of how the Federal Reserve manages large ban...