Key Points:
The EU launched a $28b tariff countermeasure against the United States, targeting American brands and industries
The S&P 500 has shaken off the news, rising as much as .8% in premarket trading
Tech stocks like Intel (Nasdaq: INTC), Tesla (Nasdaq: TSLA),and others are rising pre-market
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The EU and US Go Tit For Tat
Wednesday, March 12th – The S&P 500 fought back this morning, popping as much as .8% in pre-market trading. This, despite the $28 billion in retaliatory tariffs announced from the EU, targeting the US.
The move targets quintessentially American brands like Bourbon, and Harley-Davidson (NYSE: HOG). While sales in the Europe, Middle East, and Africa (EMEA) region accounted for approximately 16% of Harley’s total global sales the move is symbolic as much as anything. Specifically, the company sold 24,082 units in the EMEA region out of a worldwide total of 151,229 units.
The measure also includes American steel, aluminum, textiles, agricultural products, and appliances. Following the quickly escalating and then retreating tariffs between the United States and Canada, Investors are better off waiting a few days to see which of these measures and countermeasures stick.
Tech Stocks Show Resilience
Shares of Intel were looking up in pre-market trading, moving between 6-7% on the news that fellow chip maker Taiwan Semiconductor Manufacturing Company (TSMC) pitched AMD, Broadcom, and Nvidia on a joint venture with them taking ownership of Intel’s factories. Intel has been under pressure for years. CEO Pat Gelsinger was recently and abruptly dismissed from the company after the board lost faith in his turnaround effort.
Spotify (Nasdaq: SPOT) were up over 6% pre-market. This follows a nearly 4% gain yesterday as the company reported the largest ever royalty payments to artists of $10B in 2024. The Swedish company has made supporting artists a core mission, with CEO Daniel Ek once stating that:
“My ambition is we want artists to be able to afford to create the music they want to create, and if it takes them five years to sit down and make the album they want to make, they should be able to afford that. That’s my goal.”
Tesla, after being battered this year with shares down nearly 40%, is putting up a fight. Shares have similarly spiked nearly 6% in premarket trading. Yesterday, President Trump met with Musk at the White House to view and discuss Tesla’s lineup.
Inflation Looms Large
Wall Street will be digesting the February Consumer Price Index (CPI) to gauge a variety of factors including how far American spenders can stretch with rising prices, and inflation’s impact on rate cuts. The Federal Reserve has spent the last few years walking a delicate balance between too much inflation, and an economic slowdown. The additional of multinational tariffs in the mix further complicates the picture.