Happy Tuesday! As market pressures intensify, investors are wondering how far stocks could keep falling. Read on to uncover several key factors that could drive the next wave of declines and how to protect your portfolio. Also, discover one of the most fascinating things playing out in markets right now.

— Justin Giles

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MARKET RECAP

Yesterday: Stocks fell sharply Monday, marking the fourth straight losing session for both the Dow and Nasdaq, as political pressure on the Federal Reserve and ongoing tariff risks weighed on sentiment. President Trump intensified criticism of Fed Chair Jay Powell, raising concerns about the Fed’s independence and rattling investors. The U.S. dollar weakened, oil prices dipped on Iran supply concerns, and bond yields edged higher with the 10-year Treasury at 4.41%.

On Our Radar: Looking ahead to Wednesday, markets will be closely watching a trio of key Fed speakers — Tom Barkin, Neel Kashkari, and Patrick Harker — who might offer fresh clues on monetary policy. On the earnings front, Tesla, Capital One, and Intuitive Surgical are set to report results after hours today.

TOP STORY

Why Stocks Are Likely To Fall Further: Revisiting The $64 Trillion Question

Markets remain under pressure and seem poised for steeper declines. Read on to discover what’s flying under the radar and why it could have major implications for investors in the months ahead.

SPONSORED CONTENT

Aeva Reports Fourth Quarter, Full-Year Revenue Growth, New OEM Deal; Forecasts More To Come In 2025

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The company reported year-over-year revenue growth for the fourth quarter and full year, narrowed its net loss and achieved several milestones including the launch of the Aeva Atlas™ Ultra 4D LiDAR sensor. During the year, Aeva also expanded its collaboration with SICK and demonstrated the industry-first functional 4D LiDAR behind-windshield integration with an automotive partner.

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FIVE ZINGERS

Cloud Slowdown: Amazon is hitting pause on some of its data center leasing talks, echoing Microsoft’s recent moves. Read on to see why hyperscalers are tightening their expansion strategies and what it means for cloud growth ahead.

Alphabet Bounce: Amid market turmoil and political noise, Alphabet's stock shows potential for a strong rebound, especially with earnings just around the corner. Discover how traders are positioning for a rebound and potentially a big payoff.

Bank Blues: Zions Bancorp and Western Alliance Bancorp report disappointing Q1 earnings, with both regional banks facing challenges despite solid loan growth. Dive into all the details here.

Gold Rush: Gold hit another record high, fueled by a surge in ETF investments and growing fears over U.S. financial stability. Read on to see why there is still time to get in on the gold rush!

Guac and Drop: Chipotle’s stock took a hit as several analysts downgraded the company ahead of its first-quarter earnings report. Will the brand’s global expansion and innovation be enough to reverse the trend? Click to find out!

SPECIAL OFFER

The Insider Report: Is the Pain Trade Higher for Stocks Near-Term?

Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are poised to move up because of that week’s trends. Here’s a sneak peek:

One of the most fascinating things I'm seeing play out in markets right now is the consensus developing around tariffs being inflationary. This commentary isn't meant to be a judgement on whether tariffs are good or bad, rather to just explain how it's silly to assume it's going to be automatically inflationary.

This is why I'm sharing the ratio between Treasury Inflation Protected Securities (TIP) and 7-10 Year Treasuries (IEF) this week. Simply put, when this ratio rises, it means the bond market is concerned about inflation, but when it drops, it signals that capital markets aren't pricing in an uptick in prices. There was a potential breakout from a descending triangle pattern in this ratio last summer that never truly took. Now we are dealing with a lower-high compared to the 2022 peak, and it looks poised to plummet now. This is not a sign of inflationary pressures rising.

It's often said in the trading community that the cure for high prices is higher prices. Companies can mark up the price of tariffed goods, but they can't force consumers to buy them. If consumers don't buy them, at some point, the company will have to lower prices to clear inventory.

The price of crude oil is down in the doldrums as well. Energy is the primary driver of inflation expectations, and although you have Powell talking about stagflation, it simply isn't showing up in the market or in the economic data yet.

To keep reading and to find out how investors can get in front of the noise, sign up for the Insider Report here.

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