20250305 Review: The East rises while the West falls (US stocks fluctuate, Hong Kong stocks bloom)

The 'East rises while West falls' narrative is unfolding, let's see how long it lasts.

Key trading updates to watch tonight:

1.Trump discusses Canadian tariffs

Today, President Trump revealed that Canadian Prime Minister Justin Trudeau contacted him regarding tariffs. Trump expressed concerns about fentanyl-related deaths at the Canada-US-Mexico borders and doubted Trudeau's claimed progress, responding: "It's not good enough." Though the conversation ended "somewhat amicably," Trump became wary when Trudeau couldn't specify Canada's election date, suggesting he might be using tariffs to maintain power, saying: "Good luck, Justin!" The White House Press Secretary later confirmed a one-month 25% tariff exemption for Canadian and Mexican autos, following requests from three major automakers who met with Trump last night.

2.Goldman Sachs cuts Tesla $Tesla(TSLA.US) price target

Goldman Sachs recently lowered Tesla's target price from $345 to $320, citing weak delivery expectations. Analysts stated: "We've revised down below-market delivery forecasts, reflecting data through this quarter (China, Europe, US) and broader demand trends we observe." Additionally, Tesla has officially signed a five-year lease for its first Indian showroom, coinciding with Trump administration negotiations with Indian officials to remove US auto import tariffs. Meanwhile, Tesla India announced a sales consultant recruitment drive, signaling accelerated market expansion.

3.Dollar Index $DXY falls below 105 for first time this year

This aligns with the US government's goal to lower bond yields and the dollar, while pushing down 10-year Treasury yields. Consequently, the average 30-year fixed mortgage rate dropped to 6.73% (week ending Feb 28, 2025) - the lowest since December last year, below the previous week's 6.88% and last year's 7.02%. Many potential homebuyers may enter the market amid lower rates, boosting real estate demand.

4.US February private payroll growth misses expectations

February saw only 77K new private sector jobs vs. 140K expected, a seven-month low indicating hiring slowdown. However, the ISM Services Index rose to 53.5 (expected 52.5), with employment at 53.9 (above 51.5 forecast), prices paid at 62.6 (above 60.4), and new orders at 52.2 (above 51.5), showing continued service sector strength. Markets now expect three Fed rate cuts this year amid growth concerns.

5.Palantir $Palantir Tech(PLTR.US) and TWG Global form financial AI joint venture

The JV will advance AI applications in banking, investment management, and insurance, leveraging Palantir's AI infrastructure and TWG's financial expertise to enable enterprise-level AI integration. Yesterday, Palantir also partnered with Société Générale (AUM $1.6T) to deploy software supporting international retail banking, signaling expanding commercial diversification.

6.Marvell beats earnings but stock plunges 14%

Marvell reported Q4'25 adjusted EPS of $0.60 ($0.59 expected) with revenue up 27% YoY to $1.82B. It forecasts Q1'26 EPS of $0.56–$0.66 and revenue of $1.875B, slightly above expectations. Data center revenue surged 78% YoY with AI custom chips entering mass production. CEO Matt Murphy said: "We ended FY25 with record growth, expecting over 60% YoY data center/AI growth in Q1'26." Despite $933M buybacks/dividends and record $1.68B annual operating cash flow, growth concerns drove a 14% after-hours drop.

7.BofA maintains 'underperform' on HIMS

Target price $21, as analysts see limited 2025 revenue growth amid competition. $Novo Nordisk AS(NVO.US) Novo Nordisk's announcements and GLP-1 supply chain changes challenge Hims' direct model. Analysts expect Hims' Q1 2025 GLP-1 revenue over $200M but foresee growth risks from litigation/regulation.

8.German 10-year yield jumps 21bps, biggest daily rise since 2008

This followed Germany's €500B (~$540B) infrastructure/defense plan. Future Chancellor Friedrich Merz agreed to exclude defense spending exceeding 1% GDP from debt limits and relax local borrowing rules. Goldman raised 2025 German GDP growth forecast from 0.8% to 2%.

9.Apple $Apple(AAPL.US) launches M4 MacBook Air and M3 Ultra chip

The new MacBook Air offers 18-hour battery, 12MP Center Stage camera, and new Sky Blue color. The 13" model starts at $999 ($899 education), available for pre-order ahead of March 12 launch. The M3 Ultra, Apple's most powerful chip yet, supports Thunderbolt 5 and delivers double M2 Ultra's GPU performance for Mac Studio.

10.Amazon launches 'AI Agent' business

AWS VP Swami Sivasubramanian said the service uses human-like reasoning for complex workflows, with CEO Matt Garman calling it a multi-billion-dollar market. Amazon Q AI coding tools have saved 4,500 developer-years. This pits AWS against Microsoft Azure AI Agent Service, OpenAI Operator, and Google Agentspace.

11.US-China clash over fentanyl and tariffs intensifies

China rejected US claims linking fentanyl to tariff hikes, saying America should address its drug crisis and accusing it of "repaying kindness with hostility" in anti-drug cooperation. China warned US pressure underestimates its resolve, vowing to "fight to the end" if tariffs/trade wars escalate.

12.0DTE options hit record 56% of trading volume

Zero-day expiry options accounted for 56% of US equity options volume in February (S&P 500 avg: 3.49M contracts/day), a record high. $Robinhood(HOOD.US) Robinhood's 0DTE trading surged since January's full user access, coinciding with increased intraday volatility. Last Thursday, CBOE reported the second-highest VIX call volume above 50, signaling rising market volatility.