Macro Events & News
It was a holiday-shortened week, but far from uneventful—volatility and headline-driven swings were front and center. Markets opened strong on Tuesday following news that the broad tariffs on EU imports, previously set to begin June 1, would be delayed until July 9 to allow both sides time to negotiate. The bullish tone was further supported by a ruling from the U.S. Court of International Trade (USCIT), which found that Trump’s previously imposed tariffs exceeded his presidential authority and were therefore illegal.
However, any optimism was short-lived. The administration quickly appealed the decision, and a federal appeals court issued a temporary stay on Thursday evening, sending stocks lower. Then on Friday, sentiment soured further after the Trump administration accused China of violating terms in ongoing trade discussions—though no specific details were offered. At the same time, it was announced that tariffs on steel imports would increase to 50% starting next week.
An interesting twist emerged midweek after a viral moment in which a reporter asked Trump about the so-called “TACO trade” (“Trump Always Chickens Out”). Not long after, the administration ramped up tariff rhetoric and action, raising speculation that the re-escalation was ego driven. Despite the sharp tone shift, markets showed resilience—perhaps pricing in the idea that TACO happens.
Amid the week’s broader action, all eyes were also on NVIDIA (NASDAQ:NVDA), whose much-anticipated earnings report landed Wednesday after the bell. While the results showed continued dominance—revenue and growth again outpacing peers and demand remaining robust—the reaction was muted. The overhang of export restrictions to China and growing trade uncertainty overshadowed the strong print, raising concerns about future earnings dilution and the potential rise of credible Chinese competitors. In the end, the stock closed the week almost exactly where it started—an unusually perfect outcome for option sellers, given the elevated premiums priced in ahead of the report.
On the macroeconomic front, the April Personal Consumption Expenditures (PCE) report—released Friday—came in softer than expected. This was a positive signal for investors hoping for eventual rate cuts, as PCE is the Federal Reserve’s preferred inflation gauge. Still, recent FOMC minutes and official commentary have expressed concern that current tariff and trade policies could push inflation higher, complicating the Fed’s path forward.
The 10-year Treasury yield was active again this week with swings in both directions but settled at 4.4%. The VIX fell back this week despite plenty of tariff related developments to 18.57, again perhaps due to the TACO sentiment.
All the major indexes were able to hold on to early gains and close out this week higher: the Dow up 1%, the S&P 500 up close to 2%, and the Nasdaq up 2%.
Watchlist News
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Alphabet Inc (NASDAQ:GOOG) started the week strong, tracking broader market optimism following the U.S. Court of International Trade’s ruling that prior tariffs were unlawful. Shares nearly touched $177, a move of almost 5%, before pulling back in step with the market as trade tensions flared again Thursday and Friday.
august bear notes
Alphabet remains one of the more resilient names within the Mag 7. Momentum from Google I/O is still fresh, the depth of their AI product roadmap—especially Veo—generated real interest. The stock also stands out on valuation, boasting the most attractive PEG ratio among its peers. A positive catalyst could come from the ongoing antitrust case, where a judge recently suggested any remedies would be narrower than the DOJ’s original proposals. Barring further trade shocks, they could be well positioned for a bounce.
3% ▲
Meta Platforms (NASDAQ:META)showed impressive resilience this week, outperforming most large-cap peers to close up over 3%. The move was likely supported by the announcement of a $0.525 per share dividend (a 0.33% yield) and reports that Meta is exploring physical retail stores. Meanwhile, headlines like Germany’s proposed 10% digital tax failed to derail momentum.
august bear notes
Meta continues to look like one of the strongest fundamental stories in tech, with expanding revenue streams and improving monetization strategies across Threads and Llama. Technically, however, the stock is stuck in a range. While indicators suggest a breakout toward $700 is possible, the longer this sideways action persists, the greater the risk of a technical reversal. Investors should view any pullback as a potential opportunity to accumulate gradually, especially given the company’s long-term positioning.
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Snap Inc (NASDAQ:SNAP) began the week with signs of life, climbing above $8.50 before trade tensions once again took center stage and sent shares tumbling. By Friday, it had bounced off weekly lows to close near $8.
august bear notes
As noted, Snap remains a speculative name, trading near historical lows. While its path to profitability is unclear and leadership continues to underwhelm. Technically, it’s consolidating in a zone that has historically sparked sharp rebounds. A meaningful upside move likely depends on an external catalyst—perhaps a retreat in tariff rhetoric or renewed TikTok ban speculation.
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Tesla Motors (NASDAQ:TSLA) extended its rally early in the week, reaching as high as $368 on hype surrounding its upcoming robotaxi launch in Austin on June 12. Additional sentiment was buoyed by Elon Musk formally stepping down from his government AI council roles. However, the rally faded later in the week as tariff-related uncertainty weighed on risk assets, and Tesla gave up much of its weekly gains.
august bear notes
Tesla remains a hype-driven stock, increasingly disconnected from near-term fundamentals. Demand data continues to weaken across core EV markets. The real engine behind recent momentum is speculation around the upcoming robotaxi launch—despite the absence of meaningful detail. This is almost intentional as the storytelling from Tesla’s rabid, cult-like investor base, will flood forums and social media with fantastical projections about the potential of robotaxis, Optimus, stripped-down affordable models, or even the long-forgotten Semi that fuel expectations. There’s room to run until June 12, but investors should tread carefully—these rallies often disconnect from reality and tend to unravel quickly when expectations collide with execution.
