📈 TSMC Bets $100B on U.S. Chips

Good morning.

⚡ The Fast Five → Nvidia tumbles 8%, AbbVie strikes $2.2B deal with Gubra, Anthropic raises $3.5B, CoreWeave files for IPO, TSMC to build AZ plants with investment

🔎 Market Trends → Wall St closes lower as Trump sets 25% tariffs, manufacturing data dips; US Stock Futures Stabilize After Sharp Selloff

And now…

⏱️ Your 5-minute briefing for Tuesday, March 4, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Wall Street Stumbles as Tariff Jitters Weigh on Tech

The Nasdaq slumped 2.6% to 18,350.2, while the S&P 500 slid 1.8% to 5,849.7. The Dow fell 1.5% to 43,191.2 as markets braced for fresh tariffs on Canada and Mexico. Technology and energy stocks led the decline, while real estate was the lone bright spot.

The Big Picture:

Markets were already on shaky ground, but Trump’s confirmation that 25% tariffs on Canadian and Mexican imports will take effect Tuesday sent stocks tumbling. Investors are weighing the potential economic fallout, particularly as inflation concerns resurface.

The ISM’s latest manufacturing data showed price pressures stirring, while S&P Global’s survey indicated the strongest factory growth since mid-2022. This divergence adds uncertainty to the Federal Reserve’s path, with policymakers signaling they still have "more work to do" to bring inflation to target.

Treasury yields dropped as investors sought safety, with the 10-year yield falling 6.8 basis points to 4.16% and the 2-year slipping 3.5 basis points to 3.96%. Meanwhile, WTI crude fell 2% to $68.36 per barrel, reflecting demand concerns amid the trade tensions.

Market Movers:

• Nvidia (NVDA) tumbled 8.7%, leading the Dow’s decline, after reports linked its chips to a Singapore fraud case involving Dell (DELL, -7%) and Super Micro (SMCI, -13%), the worst performer on the S&P 500.

• Tech stocks were broadly hit by fears that tariffs could escalate supply-chain disruptions and drive up costs for chipmakers and cloud infrastructure firms.

• Verizon (VZ) bucked the trend, rising 1.8%, after Lockheed Martin (LMT, +1.1%) announced a partnership with Nokia (NOK) and Verizon to integrate 5G technology into military communications systems.

What They’re Saying:

"This is not what the Fed wants to see," BMO Capital Markets warned. "Rising price pressures, combined with potential tariff shocks, could make rate cuts less likely in the near term."

WHAT WE’RE WATCHING
Events

• There are no events scheduled for today.

Earnings Reports

• Today: Target, Best Buy, AutoZone, Ross Stores, Nordstrom, NIO, On Running, Flutter Entertainment, Box, Inc., Hagerty, CrowdStrike

• Tomorrow: Campbell’s, Victoria’s Secret, Foot Locker, Abercrombie & Fitch, Brown-Forman, Thor Industries, MongoDB, NexGen Energy

MARKET BRIEF
Leading News

TSMC Bets Big on U.S. Chips—$100B Big

Why it matters:

America is racing to reclaim semiconductor dominance, and TSMC (TSM) just went all-in with a $100 billion bet. The move tightens the grip of AI and chip powerhouses like Nvidia (NVDA) and Apple (AAPL) on U.S. soil—while reshaping the global supply chain.

Zoom Out:

The world’s most advanced semiconductors are the backbone of AI, smartphones, and electric vehicles. Until now, much of that chip magic was made overseas—mostly in Taiwan.

TSMC’s investment brings its total U.S. commitment to $165 billion, funding five cutting-edge fabrication plants in Arizona.

The CHIPS Act sweetened the deal with a $6.6 billion subsidy, reinforcing Washington’s push to bring chipmaking home.

The U.S. isn’t just trying to make more chips—it’s fighting to secure supply chains in an era where AI is becoming the new oil.

Key Insights:

• AI is the golden goose: The chips TSMC produces aren’t just for iPhones. They're the engines behind AI giants like Nvidia, which relies on TSMC’s 5nm and 3nm nodes to power next-gen machine learning models.

• Arizona is the new Silicon Valley—sort of: TSMC’s massive expansion signals a long-term shift toward U.S. manufacturing, but Taiwan still holds the most advanced production. Full independence? Not yet.

• A geopolitical insurance policy: With China eyeing Taiwan, TSMC’s move reduces risk for companies like Apple and AMD (AMD) that depend on its chips. The U.S. isn’t just making chips—it’s hedging against global instability.

Market Pulse:

"Semiconductors are the backbone of the modern economy. Without them, AI is just a concept and EVs are just heavy golf carts." — TSMC CEO C.C. Wei

Bull’s Take:

The U.S. semiconductor sector just got a $100 billion boost, making American AI and tech companies even stronger. TSMC’s investment is a long-term bet on AI, automation, and the insatiable demand for compute power.

Headlines

• Anthropic raises $3.5B to fuel its AI ambitions (link)

• Nvidia stock tumbles over 8% to close at lowest level since September (link)

• AI cloud provider CoreWeave files for IPO (link)

• Albertsons Names New CEO Following Failed Deal With Kroger (link)

• AbbVie enters obesity drug market with up to $2.2 billion Gubra deal (link)

• Tropicana Mulls Competing Rescue Deals as Orange Juice Sales Lag (link)

CRYPTO
Fear & Greed

Headlines

• Major U-Turn in Crypto Markets Sends Bitcoin Back Below $87K (link)

• Metaplanet Bought the Dip, Purchased a Further 156 BTC (link)

• Standard Chartered says Trump Crypto Reserve plan puts bitcoin $500,000 target back in focus (link)

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