1. A sea of red.

The S&P 500 skidded 2.7 percent after President Trump did not rule out the possibility that his trade policies could cause a recession.

This real-world impact is what Wall Street is finally pricing into risk assets. The same risks that exist today existed several weeks and months ago, but now the market has decided it cares enough to act on it.

For now, the bulls are losing the narrative game and lack a clear catalyst to turn the tide.

Here’s the S&P 500 heatmap. 2 of 11 sectors closed green, with utilities (+1.10%) leading and technology (-4.25%) lagging. Tesla fell another -5% in overnight trading, now down over -20% in one day.

2. Meta is the only member of the Magnificent 7 that's up on the year.

The other 6 are down YTD with returns ranging from -9% (Apple) to -45% (Tesla).

3. Trump’s tariff whiplash.

Just as the US is facing increased uncertainty on inflation and economic growth, Europe’s political outlook has suddenly stabilized.

Germany is aiming for big stimulus, the continent is uniting over defense spending, there’s the potential for a ceasefire in Ukraine and corporate earnings are projected to improve.

“We believe European equities have further to go,” says Amelie Derambure, senior multi-asset portfolio manager at Amundi. “The economic momentum is in the right direction. It’s going to be amplified by the plan coming from Germany. European stocks are cheaper and underowned compared to US equities,” she said on Bloomberg TV.

With investors ditching the buy-US-growth-at-any-cost mantra, America’s weight in the Bloomberg World Index has fallen to 63% from a peak of 65% in November.

4. German equities are seeing the highest inflows in a long time.

EPFR Global data show about $12 billion flowed into European equity funds in the four weeks through March 5 — a pace not seen in almost a decade, according to a note from Bank of America.

Meanwhile emerging markets saw the largest weekly inflows in three months at $2.4 billion.

“Price action suggests investors are funding European and Chinese stocks at the cost of the US,” says Mark Taylor, director of sales trading at Panmure Liberum.

5. Waymo (Alphabet) is expected to reach 1billion miles in 2030.

“In the US we will be in 10 cities robustly, by 2026.”

Waymo announced Miami as its next city, bringing its total number of announced cities to 6 (Phoenix, San Francisco, Los Angeles, Austin, Atlanta, Miami).

Here is an estimate for Waymo's Rollout versus Tesla through 2030.

Source: MS

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