Market Rundown: Trump's Stance on Fed Chair Powell and Market Reactions

Trump's Stance on Fed Chair Powell

• 📌 President Trump initially considered firing Fed Chair Jerome Powell, even reportedly writing a letter to sack him and asking Republican lawmakers for their opinion.
• 💬 Trump later stated he would not fire Powell but expressed a desire for Powell to resign.
• ⚠️ The White House had previously sent a letter to Powell expressing extreme concern over renovation costs at the Fed, seemingly laying groundwork for potential action.

Market Reactions to Fed Independence Threats

• 📊 The dollar lost 1.2% against a basket of currencies following reports of Trump's potential action against the Fed chair.
• 📈 Markets are interpreting the threat to the Fed's independence more seriously, leading to a jump in the cost of long-term US borrowing.
• 📉 Investors are pricing in aggressive interest rate cuts by a hypothetical Trump-appointed Fed chair, anticipating higher inflation.

TSMC's Record Profit and Future Concerns

• 💡 TSMC, a leading AI chip maker, posted a record profit of $13.5 billion, a 60% increase and significantly ahead of estimates.
• 🚀 Despite a 80% stock gain in 2024, TSMC's year-to-date performance is only 5% due to concerns about tariffs impacting its home country, Taiwan.
• 🌍 TSMC is mitigating these concerns by moving some production to the US, with an existing plant in Arizona.

Netflix's Ad Revenue Projections

• 💰 Forecasters estimate Netflix could generate $3 billion from ad sales by 2027.
• 📈 Investors are looking for confirmation that spending on live sports has been successful and that the ad-supported tier is attracting subscribers willing to watch commercials for a lower price.