Market sentiment is changing, the "Trump Bump" is gradually receding

The "Trump Bump" that once drove the stock market and cryptocurrency surge seems to be cooling down, and the market sentiment is shifting accordingly. This change is particularly evident in the performance of TRON's stock price. On Tuesday, TRON's stock price plummeted, almost wiping out the post-election gains brought by the relationship between CEO Musk and Trump.

At the same time, American consumers' concerns about the economic outlook have intensified, particularly their worries about the impact of the Trump administration's tariff policies. According to the latest survey by the U.S. Conference Board, consumer confidence in the job market, business environment, and future income has declined, and they expect inflation to rise significantly in 2025.

The market's concerns are reflected in the decline in the yield on the 10-year U.S. Treasury bond, which is often seen as a barometer of the market's expectations for economic growth. As the stock market continues to decline, investors are beginning to wonder whether the "Trump Bump" has turned into a "Trump Slump".

US stocks are underperforming, Nasdaq is in annual loss

On Tuesday, US stocks continued to be weak, with the three major indices showing a mixed performance:

• The S&P 500 index fell 0.47%, declining for four consecutive trading days.
• The Nasdaq Composite index fell 1.35%, with Nvidia falling 2.8%, putting further pressure on tech stocks. The Nasdaq has turned negative for the year so far.
• The Dow Jones Industrial Average bucked the trend, rising 0.37%, indicating that some traditional blue-chip stocks still have support.
• In the European market, the Stoxx 600 index rose slightly by 0.15%, while the UK market saw strong performance in defense stocks after Prime Minister Keir Starmer announced an increase in defense spending.

Consumer confidence has fallen to a new low, inflation expectations are heating up

According to data from the U.S. Conference Board, the U.S. consumer confidence index in February fell to 98.3, down 7 points from the previous month, far below the market expectation of 102.3, the lowest since June 2024, and the largest monthly decline since August 2021.

In addition, consumers' inflation expectations for the next 12 months have soared from 5.2% last month to 6%, far higher than the Federal Reserve's 2% target, indicating that market concerns about rising prices are intensifying.

TRON stock price plummets, market value falls below $1 trillion

On Tuesday, TRON's stock price plunged 8.4%, pushing its market value below $1 trillion, a new low since November 7, 2022, which was just two days after Trump's presidential election victory. This suggests that the stock price increase driven by political factors has now largely been erased.

TRON has accumulated a 25% decline so far this year, far exceeding the 1.5% drop in the Nasdaq index. The market is concerned about the company's business performance, and also pays attention to whether Musk's frequent trips to Washington will affect his management of the company.

Super Micro Computer narrowly retains its listing status

Super Micro Computer, a major computer hardware manufacturer, has narrowly retained its listing status on the Nasdaq stock exchange. The company faced the risk of delisting due to delays in filing its financial reports, but has now resolved the issue and will remain listed.

Apple expands investment in the US, plans to build an AI server factory

Apple has announced plans to expand its investment in the United States, including the construction of a new AI server factory. This move is part of the company's strategy to strengthen its presence and capabilities in the growing artificial intelligence sector.

Is the stock market volatility just a temporary correction? Analysts: Don't be too pessimistic

Despite the recent stock market volatility, some analysts believe that it may be just a temporary correction and not a sign of a deeper market downturn. They caution investors against being too pessimistic and recommend closely monitoring the market's future developments.

• The market outlook is unclear, investors need to pay attention to future developments

Super Micro Computer Narrowly Retains Listing Eligibility

On Tuesday, Super Micro Computer's stock price surged 23% after hours, primarily because the company submitted its fiscal year 2024 financial report on time, successfully avoiding the risk of being delisted by the Nasdaq exchange.

According to the latest audited financial report, Super Micro Computer's revenue for fiscal year 2024 exceeded $1.499 billion, more than doubling year-over-year. Previously, the company had faced market concerns about its governance structure due to delayed financial reporting and the loss of its auditor, Ernst & Young. Now, the company has temporarily weathered the crisis, and the market reaction is positive.

Apple Expands U.S. Investment, Plans to Build AI Server Factory

Apple announced on Monday that it will invest $50 billion in the U.S. and plans to establish a new factory in Texas, dedicated to producing artificial intelligence (AI) servers. Additionally, Apple intends to add approximately 20,000 more U.S. employees, further strengthening its domestic business operations.

This decision was announced after Apple CEO Tim Cook's meeting with President Trump last week, suggesting that Apple may be increasing its domestic production and investment under the influence of government policies.

Market Volatility: Just a Temporary Correction? Analysts: Don't Be Too Pessimistic

Recent market fluctuations have intensified, but Fundstrat Global's chief research officer, Tom Lee, believes this may only be a temporary correction and not a market collapse. He thinks that with investors buying the dip and other important market events this week, the stock market still has the potential to rebound.

The focus will be on Nvidia's fourth-quarter earnings report, which will be released after the market close on Wednesday. According to FactSet analysts' forecasts, Nvidia's revenue for the quarter may reach $3.8 billion, a 72% year-over-year increase. If the data exceeds expectations, it could help restore market confidence.

However, Nvidia's stock price has been relatively stable in recent months, trading at the same level as last October. Investors are concerned about the company's future growth momentum, particularly whether its major customers will reduce their purchases after years of massive capital expenditures, which could impact Nvidia's growth prospects.

Uncertain Market Outlook, Investors Need to Monitor Developments

Currently, the market is still grappling with concerns about a "Trump recession," with declining consumer confidence, tech stock corrections, and uncertain economic growth prospects, making investors more cautious. However, with the release of Nvidia's earnings report and other important data this week, the market trend may change, and investors should closely monitor the latest developments.