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In today’s edition,
- Tariffs pressure Apple
- India and tech IPOs
- Tesla is under pressure
- Circle goes public
Market Snapshot
U.S. markets posted their worst weekly performance in over five years after the Trump administration announced sweeping new tariffs, sparking fears of slower growth, higher inflation, and a potential recession.
The S&P 500 fell 8.21% to 5,074.08, the Nasdaq dropped 8.55% to 15,587.79, and the Dow Jones slid 7.41% to 38,314.86. Small-cap stocks were hit hardest, with the Russell 2000 down nearly 10% and over 30% off its all-time high.
The tariff news led to a sharp global selloff and increased expectations of Fed rate cuts later this year. Fed Chair Jerome Powell acknowledged rising risks but signaled a wait-and-watch approach. Meanwhile, the March jobs report showed strength, with 228,000 jobs added, though the unemployment rate rose to 4.2%. Still, labor market resilience wasn’t enough to lift sentiment as trade tensions remained the dominant theme.
Stock market closing data for the week of Mar 31st to Apr 4th, 2025
News Summaries
Apple’s supply chain is under stress as the US rolls out a set of reciprocal tariffs impacting most of the company’s key manufacturing hubs. Starting April 9, Chinese imports will face a 34% reciprocal tariff, bringing the total to 54%, despite Apple’s gradual shift away from China. Other production centers aren’t spared: India faces 26%, Vietnam 46%, Malaysia 24%, Thailand 36%, and Ireland 20%. These new levies come at a time when Apple continues to rely heavily on global suppliers, making cost absorption difficult. The company’s stock dropped nearly 8% in after-hours trading, reflecting investor concerns over margin pressure, especially since analysts don’t expect Apple to increase prices in a weak consumer market. During Trump’s earlier term, Apple had successfully secured exemptions by positioning itself as a strategic American company, but this time, even a $500 billion US investment pledge and limited production in Texas and Arizona may not shield it. Apple has navigated complex geopolitics before, but this is a broader test of its global manufacturing strategy. If these tariffs stay, Apple’s long-term goal may be to build much closer to home.
Over 36 Indian tech startups valued at $100 billion are preparing to go public by 2027, signaling a potential rebound in IPO activity after a 34% drop in Q1 share sales. Firms like Flipkart, PhonePe, and Oyo are leading the charge, with two-thirds already profitable—unlike the 2021–22 cycle, where overvalued listings like Paytm (-63%) and Nykaa (-4%) disappointed. IPO proceeds in Q1 fell to $7.1 billion, putting India behind Hong Kong and Japan, but upcoming listings like LG’s India arm ($1.7B) and Ather Energy ($400M) could shift momentum. Large investors like SoftBank and Prosus are eyeing exits, though pricing will need to stay grounded as investor sentiment remains cautious. The focus is now on sustainable growth and transparency, not just big names and hype. If startups stick to that playbook, this next wave could restore faith in India’s public markets.
Tesla’s global vehicle deliveries fell 13% year-on-year in Q1 to 336,681 units. This missed analyst estimate of nearly 397,000 was due to weakening demand in key markets and backlash against Elon Musk’s political actions. In March, sales in China dropped 11% (and 49% in February). Germany saw a 76% plunge in February, and U.S. sales dipped 2% in the first two months of the year. In California, Tesla registrations fell 11.6% in 2024. Political protests, brand fatigue, and competition from new EV models by GM and Kia are all contributing to the decline. Delays in purchases ahead of the refreshed Model Y may have also affected Q1 numbers. Despite the delivery miss, Tesla shares jumped over 5% after a report suggested Musk might reduce his White House role. The company’s stock is still down 45% this year. Tesla is now focusing on future plans for autonomous ride-hailing and robotics to change its narrative. If execution aligns with its vision, Tesla may still capture investor interest, even as its car dominance wanes.
From the World of Crypto
Circle, the company behind the USDC stablecoin, has officially filed to go public on the New York Stock Exchange under the ticker CRCL, aiming for a valuation of around $5 billion.
Big names like JPMorgan Chase and Citigroup are leading the IPO. This is Circle’s second try after its earlier plan to go public through a SPAC deal fell apart in 2022. Since then, the company has moved its headquarters to One World Trade Center in New York, signaling it wants to be taken seriously by traditional finance.
Circle made $1.68 billion in revenue and reserve income last year, up from $1.45 billion in 2023 and $772 million in 2022. Profit dropped a bit to $156 million, compared to $268 million the year before, which could be due to higher costs or expansion efforts. Still, it’s one of the few crypto firms with real revenue and profits heading into public markets.
USDC, its main product, is the world’s second-largest stablecoin with about $60 billion in circulation, making up 26% of the market. While Tether still dominates with 67%, USDC is growing faster: 36% this year, compared to Tether’s 5%. The overall stablecoin market is also picking up, growing 11% so far in 2024 and 47% over the past year.
This IPO comes as the crypto industry is hoping for more clarity from U.S. regulators, especially around stablecoins. There’s a chance that new legislation could pass by August. Circle also shares 50% of its USDC revenue with Coinbase, which has made it a key part of its long-term strategy.
If Circle pulls this off, it won’t just be a win for them; it could be a turning point for stablecoins and crypto infrastructure in general. This might just be the start of crypto growing up and going mainstream.
