First Week of March 2025 – Well-th Notes

By VWG Wealth Management on March 7, 2025

Weekly data-driven insights on the markets and economy

First week of March 2025

Tariff trade wars on the rise?

President Trump implemented sweeping tariffs on Tuesday on goods imported from Canada and Mexico while also increasing punitive duties on China. Mexico’s president announced retaliatory tariffs set to begin on Sunday. Economists warned that these aggressive moves could trigger global inflation, and the stock market reacted negatively, with the S&P 500 experiencing its worst day on Monday since December.[i]

Target misses the mark

Target warned on Tuesday of a significant drop in first-quarter profit due to consumer uncertainty, soft February sales, and tariff concerns. This follows similar warnings from Walmart and E.l.f. Beauty. Target’s finance chief cited declining consumer confidence and cold weather as factors, while CEO Brian Cornell noted that upcoming tariffs on Mexican imports could raise produce prices.[ii]

Tesla in trouble?

Tesla’s stock continued its decline into March, dropping another 3% on the first trading day, pushing its market cap to about $915 billion. This follows a 28% plunge in February, during CEO Elon Musk’s first full month in President Trump’s White House. The slide on Monday was prompted by a social media post from Musk over the weekend, suggesting that a “1,000% gain for Tesla in 5 years is possible” with “outstanding execution.”[iii]

Anthropic’s big boost

Anthropic closed its latest funding round on Monday at a $61.5 billion post-money valuation. The $3.5 billion round was led by Lightspeed Venture Partners, with participation from Salesforce Ventures, Cisco Investments, and others. The AI startup, backed by Amazon, plans to use the funds to advance next-generation AI development and expand internationally.[iv]

Kroger CEO shake-up

Kroger Chairman and CEO Rodney McMullen resigned on Monday following an internal investigation into his personal conduct, which was found to be inconsistent with the company’s business ethics policy. Board member Ronald Sargent will serve as chairman and interim CEO, effective immediately, while Kroger conducts a search for a permanent replacement. McMullen’s departure comes as Kroger is regrouping from its failed merger attempt with Albertsons.[v]

Academy Awards accumulates viewers

This year’s Academy Awards ceremony attracted 19.7 million U.S. viewers, the largest audience in five years. The viewership, revised from 18.1 million to include streaming, saw a 1% increase from 2024 and a 19% rise among adults under 50. This impressive turnout is largely due to the inclusion of streaming platforms, which helped boost numbers that had been declining as audiences moved away from traditional television to streaming and social media. ^[vi]

[i] Li, Yun. “Trump tariffs live updates: Mexico says it will retaliate, joining Canada and China.” CNBC, 4 March 2025, https://www.cnbc.com/2025/03/04/trumps-tariffs-start-global-trade-live-updates.html. Accessed March 4, 2025.

[ii] Fonrouge, Gabrielle. “Target warns February sales were soft, adding to concerns about consumer health.” CNBC, 4 March 2025, https://www.cnbc.com/2025/03/04/target-tgt-q4-2024-earnings.html. Accessed March 4, 2025.

[iii] Kolodny, Laura. “Tesla’s worst month since 2022 coincided with Elon Musk’s first full month in White House.” CNBC, 4 March 2025, https://www.cnbc.com/2025/03/04/elon-musk-first-month-in-white-house-was-tesla-worst-month-since-2022.html. Accessed March 4, 2025.

[iv] Field, Hayden. “Amazon-backed AI firm Anthropic valued at $61.5 billion after latest round.” CNBC, 3 March 2025, https://www.cnbc.com/2025/03/03/amazon-backed-ai-firm-anthropic-valued-at-61point5-billion-after-latest-round.html.Accessed March 3, 2025.

[v] “Kroger Chairman and CEO resigns following investigation into personal conduct.” CNBC, 3 March 2025, https://www.cnbc.com/2025/03/03/kroger-chairman-and-ceo-resigns-following-investigation-into-personal-conduct.html. Accessed March 3, 2025.

[vi] Richwine, Lisa. “Oscars audience hits 5-year high as ‘Anora’ takes top prize.” Reuters, 4 March 2025, https://www.reuters.com/business/media-telecom/about-18-million-people-watched-oscars-honor-anora-2025-03-04/. Accessed March 4, 2025.