The Rundown - Trump Hits Canada with More Tariffs, Airlines Warn of Weakening Demand

Episode Date: March 11, 2025

Stock market update for March 11, 2025.

Public.com presents the rundown. Your daily market update in five minutes. My name is Zadmani, and today is Tuesday, March 11th. In today's episode, we assess the bloodbath in the markets and why the bumpy ride may not be over. We also tell you about warnings from the airline industry and a major shakeup at Southwest that nobody's going to like. Then stick around to the end of the show to find out the impact

that Chad GPT is having on the job. market these days. All right, let's go. Well, guys, it was an absolutely brutal start to the week. Stocks got wrecked on Monday as investors start freaking out about the possibility of a recession. The S&P 500 dropped 2.7% and the NASDAQ dropped 4% for the worst day since 2022. I mean, it was a bloodbath across the board. Nearly 70% of the companies in the S&P 500 were in the red, with big tech stocks taking the biggest hit. In fact, the worst performing stock yesterday was Tesla down more than 15%. That's the biggest one-day drop for Tesla since 2020.

The stock has now lost more than 40% of its value in 2025. We actually talked about Tesla's struggles on yesterday's show and how Elon's involvement in politics might be contributing to that. So go check that out if you missed it. Now, Donald Trump is sticking up for his buddy Elon. He posted on truth social that he's planning to buy a brand new Tesla. So maybe a presidential endorsement of Tesla might help the stock price or it might end up hurting it more. So we'll see what happens today with Tesla and the markets overall.

Maybe the markets see a debt cap bounce today. It's crazy to think, though, that the S&P was making all-time highs three weeks ago. And since then, the index has been in a free fall losing more than 8%. You know, I thought that we might get a little bit of calm in the markets this week after last week's roller coaster with tariffs. But nope, that's not what's happening. In fact, it's gotten more intense this week with talks of a problem. potential recession. And now with the CPI report dropping tomorrow morning, we might have a few more bumps than loop-de-loops ahead. And we got some breaking news. As I'm recording this, Trump just announced

an additional 25% tariff on Canadian steel and aluminum imports bring the total tariffs to 50%. Trump says this is in response to the Ontario government slapping a 25% tax on energy exports to the U.S. So it looks like the trade wars continue into this week. You know, last week I did say I like the volatility. I think it might be ready to get off this ride. Start and feel a little nauseous. Let's run through some headlines. And we got a ton of news coming out of the airline industry, and it's not great. Let's start with Delta. Delta Airlines lowered their first quarter revenue and profit outlook yesterday because they expect weaker domestic demand. Delta cites a reduction in consumer and corporate confidence and increased macro uncertainty. So this could be early

signs of a potential economic slowdown since consumers and businesses are starting to pull back on travel. American Airlines is also cutting their first quarter earnings outlook. They're also expecting weak leisure travel demand and they're also dealing with the fallout of the fatal plane crash in DC earlier this year. And finally, you have Southwest. They've been struggling for a while now, so they decided to shake things up and make some major changes. Southwest is getting rid of their iconic bag fly free policy. Starting on May 28th, Flyers will have to pay the check in their bags at Southwest. Previously, Southwest allowed two free check bags. I mean, they literally trademarked the term two bags fly free, but Southwest really needs more revenue these

days. So they're getting rid of that policy and charging for bags similar to all the other airlines in the U.S. Now, I'm not shocked by this news. This was kind of expected, but I thought that Southwest might let at least one bag fly for free, but nope, they're getting rid of the whole thing. Now, I recently took Southwest, and the free check bag was a major reason for that. So this gives me even less reason to take Southwest. On top of this change, Southwest will also start offering bare bones basic economy fairs, and they're making changes to their flight credit policy. Flight credits will now expire after a year.

Previously, there was no expiration dates to their flight credits, but that's going away too. So not great news for Southwest fans out there. The markets obviously love this, though. Southwest stock is up around 9% this morning in reaction to the. these policy changes. Let's shift gears and talk about meta. They have started testing their first in-house AI chip according to Reuters. This homemade chip by meta is meant to reduce to reliance on external chip suppliers, most notably Nvidia, which counts meta as one of their biggest customers. Now for this custom chip, meta is working with TSM, who also manufactures chips for NVIDIA,

and if this test is successful, meta plans to ramp up production for wider use. Meta's KappX forecast for 2025 is $65 billion, with most of that driven by AI spending. So if they can successfully make their own chip, that could help bring down some of their costs long term. You know, it's probably a lot cheaper to build an in-house AI chip than continuing to pay NVIDIA billions of dollars. But that's easier said than done, though, because META had tried to make their own inference chip a few years ago. But that didn't go well, so they abandoned that plan and instead started acquiring massive amounts of Nvidia chips. But at some point, META wants to have their own chips, and meta executives have said they hope to use their own chips by 2026 for training.

So potential good news for meta, not great news for Nvidia. I mean, both these companies have had a pretty tough month. Meta stock is down around 15% over the last month, and Nvidia stock is down close to 17%. Let's talk about some stocks making moves today. Service Now stock is up today after the enterprise software company announced they are stepping up their AI game by acquiring the AI startup Moveworks for $2.85 billion.

This is ServiceNow's biggest acquisition ever. Service Now is an enterprise software platform which helps businesses automate and organized processes and services. That's a lot of buzzwords right there. And this acquisition with MoveWorks makes sense because MoveWorks is a platform that uses a generative AI assistant

for employee support. So investors seem to like this acquisition. ServiceNow stock is up around 4% this morning. Now on the flip side, the software company Asana is getting crushed this morning after their CEO and founder Dustin Moskowitz announced that he was retiring from the company. The 40-year-old made the announcement as part of Asana's earnings report on Monday, and he said he intends to transition to be the chairman of the company.

But investors did not like this news. Shares are down more than 25% this morning. In fact, Moskowitz is going to be the biggest hit by this because he owns like 53% of the outstanding shares of Asana. So his net worth just took a big hit. Moskowitz is one of the co-founders of Facebook. He was one of Mark Zuckerberg's Harvard roommates. and he left Facebook to start Asana back in 2008. And he currently has a net worth of around $16 billion.

A lot of that probably being Facebook or meta stock. Let's wrap the show with the fun fact. If you're looking for a job in tech, you may need to put AI on your resume. Nearly one in four U.S. tech jobs posted this year are seeking candidates with artificial intelligence skills, according to the Wall Street Journal. The launch of Chad GPT back in 2022 was a turning point,

new AI-related job postings are up 68% since ChatCHDP came out in Q4, 2022 through the end of last year. And that's a stark contrast to the 27% drop in tech jobs overall. And this demand is coming from a broad range of sectors too. IT is leading the way, obviously, with more than a third of new listings asking for AI experience. But there's also been a big leap in the finance sector, the retail sector, and educational services as well. So if you're on the job hunt right now, learning AI will definitely help. I guess you could use chat GPT to learn how to use AI. Well, all right, guys, that's the rundown for today.

Let's hope we get a bit of calm in the markets today because tomorrow should be a big one with the CPI report coming out. We'll be recapping that along with everything else that's happening in the markets and tomorrow's episodes and make sure you guys tune in. And if you enjoyed today's episode and have like 12 extra seconds, consider giving us a five-star rating on Apple or Spotify. Don't forget to vote in today's Spotify poll. Leave us a comment on Spotify.

All that engaged. really does help us out and it helps other people find the show. Thank you guys so much for listening. Shout out to Mike and Connor for all the help behind the scenes. And we'll see you guys back here tomorrow. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in the show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell or hold that security.

Run-down guests are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respected professionals. Learn more at public.com disclosures. with Zayidemani. Brokage services for U.S. listed, registered securities are offered by open to the public investing Incorporated, member FINRA and SIPC.