To The Moon

While US market waits for the much anticipated FOMC May 2025 meeting wrap up on Wed, 07 May 2025, US market took a beating for the 2nd day in a row. On Tue, 06 May 2025 - US stocks fell across the board as traders stayed on the sidelines, waiting for Fed’s policy decision (that is almost baked-in as per CME Fedwatch tool) and also more news insight into trade deals (between US & China). US / China To Finally Meet ! This comes about after both sides officially announced (almost) in unison that they will finally be meeting in Geneva, Switzerland, over coming weekend of May 10 - 11. US Representatives: Treasury Secretary - Scott Bessent. US Trade Representative - Jamieson Greer. Chinese Representative: Chief economic advisor - Vice Premier He Lifeng, This marks the first high-level, face-to-face engagement between the two super economies, since the April tariffs escalation saga. They are intended to address tariff reductions and broader trade issues. By the time market closed on Tuesday: (see above) DJIA: -0.95% (-389.83 to 40,829.00). S&P 500: -0.77% (-43.47 to 5,606.91). Nasdaq: -0.87% (-154.58 to 17,689.66). The silver lining is US indexes’ futures are in the green zone after news of the US/China trade talk was announced. US Trade Report. It is very likely that US Trade report for March 2025 had dampenedg US market sentiments on Tuesday. (see above) According to Commerce Department, US international trade deficit (including goods & services), widened +14% in March to a record seasonally adjusted $140.5 billion. Earlier on, economists surveyed by The Wall Street Journal (WSJ) had predicted US deficit would widen to $136 billion from $122.7 billion in February 2025. At $140.5 billion, imports actuals have exceed forecasts again. As mentioned previously, US companies rushed to import foreign products while they were still slightly cheaper than they would be with White House tariffs added to the cost. As a result, goods imports accelerate +5.4% to all-time high (ATH) of $346.8 billion with consumer goods rising to an all-time high of $22.5 billion, comprising mostly of pharmaceutical products from Ireland. Year-to-date, the trade deficit has doubled from last year while Exports failed to keep pace with imports, increasing a “healthy” 23.3%. Interestingly, imports from China were at its lowest level in 5 years while imports from most countries were highest on record. If talks fail and strict trade barriers are enacted, Americans could notice shortages or empty shelves in 1–3 months, with some high-demand or perishable products affected sooner. Objectively, exports out of US also climbed marginally by +0.2% to $278.5 billion, also a record high. Exports of goods increased +0.7% to $183.2 billion, the highest level since July 2022. Industrial supplies & materials sales lifted, that advanced $2.2 billion amid rises in natural gas and non-monetary gold. Overall, imports still overwhelmed exports leading to record deficit for March 2025. $Palantir Technologies Inc.(PLTR)$ -12% Fall. One of the major casualties in US market’s Tuesday correction was Palantir. This comes about despite the data analytics & artificial intelligence software company reported: A more than stellar earnings report card for Q1 2025. An upwards revision to Q2 2025 guidance. Although, PLTR has once again delivered an exceptional quarter. However, when expectations are so high, earnings beats and raised guidance are not enough to keep markets happy. And just like that, PLTR fell -12% to $108.86 per share on Tue, 06 May 2025 - as investors scrutinized: Company's valuation. Declining sales in its international business. PLTR’s failure to reach a high bar on growth. Further scrutiny. Palantir’s Q1 revenue in its “International Commercial” segment (selling software to businesses abroad), posted a -5% YoY decline. The segment’s $142 million (revenue) was below the $160 million expected by Wall Street analysts. During earnings call conference, PLTR’s management said that the EU region is “going through a very structural change and does not quite get AI. To get out of the current doldrum, PLTR needs to keep growing and show more progress to match its high value. Investors should have faith & patience. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. Buffett's Warning : Will Investors Flee ? AMZN: Consolidation Continues This Week ? PLTR : Earnings exceed forecasts again ? Do you think this weekend’s de-escalation trade talk will conclude smoothly ? Do you think PLTR will be able to power through this rough patch and grow from strength to strength’? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents