Markets Nervous, Buffett Exits as Trade Wars & Stagflation Fears Dominate

Good morning, Hustlrs!

The U.S. stock market swung wildly from May 5–9, 2025, as investors weighed mixed economic data, uncertain trade policy , and Federal Reserve’s interest rate decision. 

Here’s what mattered this week:

☕️ Quick Brew: This Week’s Market Pulse

• US-China Trade Talks: Tense negotiations in Switzerland—Trump threatens steep tariffs, but behind closed doors, negotiators are aiming for a possible compromise at 50–54%. Still tough, but not catastrophic.

• Fed’s Stagflation Fear: Fed Governor Barr hinted at concerns over rising prices and slowing job growth.  (stagflation). No rate cuts yet—just nervous waiting.

• Sector Split: Oil prices boosted energy stocks,while April’s flat consumer spending hinted at inflation fatigue.

The Nasdaq looked set to confirm a bear market on Friday, down more than 20% from its record high.

Companies like Apple, Microsoft, Alphabet, Amazon, and Nvidia — already navigating regulatory scrutiny and supply chain recalibrations — now face an additional layer of complexity because China is not only a vital consumer market but also a critical node in production

While panic dominates headlines, top investors see opportunity in the chaos. 

To help you navigate this turbulent time, we’ll look at insights from three market leaders: Tom Lee, Cathie Wood, and Warren Buffett. 

They each have their ways of exploiting market volatility and turn downturns into opportunities.

📰 The Big Stories

1. US-China: The Swiss Showdown

The week’s biggest drama unfolded in Geneva, where U.S. and Chinese officials clashed over Trump’s “80% tariff” threat. Treasury Secretary Bessent, along with Trade Representative Greer, represented the U.S. Markets are holding their breath, with rumors of reductions to 50-54% if talks go well.

China’s exports  pulled off a surprise win in April, not from shipping to the U.S., but by rerouting goods to Southeast Asia, India, and Europe. A successful deal next week could calm markets; failure might trigger the opposite.

2. Fed’s "Wait-and-See" Standoff Amidst Stagflation Fears

Jerome Powell's press conference was a shocking wake-up call. He offered no clear direction, and emphasized ongoing risks. He signaled that The Fed wants "more data" before moving, leaving traders guessing.

The Fed held interest rates steady at 4.25%–4.5%, but Powell said, “We don’t know what’s next.” The actual risk is we could be heading for stagflation — where prices go up and jobs go down in an economy.

 The worst-case scenario (price spikes + layoffs) is now on the table.

Trump’s tariffs could make things worse, but the timing and impact remain uncertain. 

3. Buffett’s Farewell

Warren Buffett, 94, stepped down after 60 years at the helm of Berkshire Hathaway (BRK-A), now worth $1 trillion. 

Buffett has an insane track record of 5,500,000% gains since 1965. Let’s just say: If you invested $1,000 with Buffett in 1965, you’d be sitting on $55 million today. 

Now, his successor Greg Abel — a 62-year-old Canadian running the show behind the company, will take the reins. Buffett is worth $168 billion — mostly in Berkshire stock. 

What to Watch Next Week

• US-China Trade Talks: Deal or delay? All eyes are on Bessent and Chinese state media for the next moves.

• More Trade Deals: Following the UK, look for progress with India, the EU, and Gulf wealth funds.

• Consumer Data:  Are people still buying, or is inflation killing budgets? 

• Fed Speak: Any Fed officials' comments hinting at rate cuts could spark a market rally.

🗓️ The Final Word

Markets are at a crossroads with the trade tensions, the Fed playing it safe, and consumers all feeling the spending slump.

 All eyes are on Switzerland for next week as the US-China talks could set the tone for summer — whether markets rally or retreat.

Stay hungry, stay global, and keep hustling! 

The Global Hustlr Advantage 

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Happy investing, 

The Global Hustlr Team

This newsletter is for informational purposes only and does not constitute investment advice. See you next week!