This morning, rattled investors finally received good news when February’s Consumer Price Index (CPI) came in below expectations.
Prices rose 0.2% on the month, putting the year-over-year rate at 2.8%. Dow Jones economists had forecasted 0.3% monthly and 2.9% yearly growth.
Core inflation, which strips out volatile food and energy prices, also came in soft. The monthly figure rose 0.2%, putting the yearly climb at 3.1%. This was below forecasts of 0.3% and 3.2%, respectively.
Digging into the details, shelter costs remain the biggest driver of inflation. They jumped 0.3% in January, responsible for about half of the monthly CPI increase (remember, “shelter” is more than one-third of the total CPI).
Wall Street is breathing a sigh of relief. The growing fear of late has been “stagflation,” but this morning’s numbers ease those concerns.
However, the data don’t include much of what’s happened in recent weeks with tariffs – not to mention whatever tariffs are on the way. So, while we’ll take this morning’s win, we remain cautious.
Speaking of tariffs and “whatever tariffs are on the way”…
As reported in Tuesday’s Digest, yesterday, President Trump ordered tariffs on Canadian steel and aluminum to be increased another 25%, taking the full duty to 50%.
Per Trump, this was retaliatory in response to Ontario placing a 25% tariff on electricity coming into the United States.
But after Ontario Premier Doug Ford had “productive” talks with U.S. Commerce Secretary Howard Lutnick yesterday afternoon, Ford backed down on the 25% surcharge. In response, Trump removed his ordered 25% tariff increase.
The tariff relief was short-lived…
While electricity tariffs are off the table for the moment, this morning, we learned that Canada will impose a 25% tariff on more than $20 billion worth of U.S. goods.
Here’s CNBC:
The new tariffs cover steel and aluminum, as well as other U.S. goods including computers, sports equipment and cast iron products, Canadian Finance Minister Dominic LeBlanc said at a press conference.
They will take effect Thursday, LeBlanc said.
The new Canadian duties are on top of the 25% counter-tariffs that Ottawa slapped on $30 billion worth of U.S. goods on March 4, in response to President Donald Trump’s imposition of broad-based tariffs on Canadian imports.
Meanwhile, the European Union (EU) is getting in on the tariff action.
From The Wall Street Journal:
The EU said it plans 50% tariffs on imports of American whiskey, motorcycles and motorboats starting April 1, hitting some of America’s best-known products including Kentucky bourbon and Harley-Davidson motorcycles…
A second set of EU levies is due to take effect in mid-April.
An initial list of goods ranges from American chewing gum to poultry, beef, white chocolate, soybeans, carpets and watermelons…
The bloc’s tariffs will also target U.S. steel and aluminum products.
And so, the trade war continues…
Switching gears, it’s last call for tomorrow’s “The Next 50X NVIDIA Call” from legendary investor Louis Navellier
Candidly, Louis’ event could be a significant moneymaker for you.
I’ll provide the entire backstory momentarily, but here’s my quick logic…
History shows that partnerships with AI-chip giant Nvidia (NVDA) can be incredibly lucrative for investors who own the smaller stock that partners with NVIDIA.
Sometimes, the gains are nice but not life-changing.
For example, autonomous driving software company Aurora Innovation (AUR) jumped 35% immediately after announcing its partnership with Nvidia.
(Disclosure: I own AUR.)
Other times, the partnerships result in what I’ll call “great vacation” returns.
For example, Nvidia’s investment in Applied Digital (APLD) led to a 100%+ increase. And after SoundHound AI (SOUN) partnered with Nvidia, its stock price nearly tripled.
But on certain occasions, the partnerships produce life-changing wealth.
Quanta Services (PWR) surged 1,000% following its Nvidia deal. And Super Micro Computer (SMCI) shot up 2,460% after the two companies got into bed.
Bottom line: A partnership with NVIDIA can be a big deal.
With that context, here’s Louis:
I’ve found a stock that could be next in line.
It’s a tiny company that already has contracts with Nvidia, Amazon (AMZN), Microsoft (MSFT), and even NASA…
If Nvidia makes a major announcement at Q-Day, this company will play a key role – and it could see explosive gains as a result.
In fact, it could create a 50X profit opportunity.
If so, that would turn a $10,000 investment into a $500,000 windfall.
Backing up to fill in the details…
If you’re new to the Digest, one week from tomorrow, Nvidia will hold the first ever “Quantum Day” at their annual AI Conference, or what Louis is calling “Q-Day.”
It’s going to bring together industry leaders, developers, and partners to explore the future of quantum computing.
To make sure we’re all on the same page, quantum computing is a gargantuan technological step forward where we’ll leverage the principles of quantum mechanics to process information exponentially faster than classical computers.
Quantum computers will be millions of times faster than the most advanced supercomputers that our scientists and government use today.
As highlighted earlier, Louis believes that Nvidia will announce a big move into quantum computing one week from tomorrow. If so, (and especially if we get word of the partnership that Louis anticipates), then this small-cap stock is going to move.
The question is simply: “How much?”
Louis just put 50X on the table. But for more details on that forecast, as well as a deeper dive into quantum computing, Nvidia, and this potential partnership, join Louis tomorrow at 1 p.m. Eastern.
This is your last chance to be a part of the event. For a one-click instant registration, click here and we’ll get you the attendance details.
Here’s Louis with our final word on the topic today:
My prediction is that Nvidia will figure out a way to marry AI with quantum computing in a way no one has ever done before. We’re talking about the possibility of a new technological breakthrough that could affect industries worth a combined $46 trillion.
But if you really want to make big gains, you have to start looking at the “pure play” quantum companies that Nvidia and other Big Tech companies are partnering with.
Here’s the thing – Wall Street hasn’t caught on yet [to this potential partnership Louis believes is coming].
So, I’m telling folks about it before Nvidia’s Q-Day on March 20.
My goal for this briefing is to get you AHEAD of the crowd… AHEAD of the news outlets…
You can reserve your spot instantly by clicking here.
Shifting gears, amid the recent selling pressure, remember to look for opportunities
From investor, philanthropist, and former U.S. Ambassador to Switzerland Shelby Cullom Davis:
You make most of your money in a bear market, you just don’t realize it at the time.
Though we’re not in a bear market, it’s felt that way recently.
How you handle such an environment is what separates everyday investors from opportunistic investors. And right now, we’re seeing growing opportunities.
For example, yesterday brought this headline from CNBC:
Microsoft is open to using natural gas to power AI data centers to keep up with demand
Natural gas has been on Louis’ radar for months. He’s been zeroing in on how it will power the explosion of AI data centers we’ll see this decade:
Trump 2.0 will slash regulations and dismantle roadblocks to development on an unprecedented scale.
Once that happens, expect to see a massive buildout of data centers, electrical infrastructure, nuclear facilities, natural gas plants and whatever else Big Tech needs to fast-track the AI Boom…
And investors who stay focused on fundamentals – like accelerating earnings and sales growth – and don’t get distracted or react to every headline, will prosper.
Natural gas has been roaring recently, despite this market correction.
For example, the U.S. Natural Gas Fund (UNG), is up almost 30% in 2025 while the S&P 500 has lost nearly 6%.
And many top-tier natural gas plays are up on the year while the S&P has fallen into the red.
This recalls the essay from InvestorPlace’s CEO Brian Hunt that we shared yesterday. In it, Brian urged readers to refocus on what matters during times of heightened market turbulence.
Read the excerpt below through the lens of the recent market selloff occurring at the same time that billions of dollars are flowing toward AI – and select natural gas plays that will power it:
When the stock market goes through a big drop and your portfolio’s value is going lower and lower, it can be difficult to know what to do.
It’s an emotional time and mistakes are common when we are feeling pressure…
During stock market corrections, I ask you to focus on what really matters: progress, transformational industry trends, creating value for others, and innovation.
Our recent stock market pullback is irrelevant when it comes to AI technological advancements… how we’ll power that technology… and the eventual return potential of top-tier stocks at the forefront of this trend.
Actually, that’s not true.
Today’s correction is relevant in that it’s making entry prices lower.
Now, it’s important to be clear…
I’m not saying everything in the market is a “Buy” today. But I am saying that this degree of selloff deserves our attention.
Rather than anxiously sticking our heads in the sand, let’s actively look for buying opportunities
Market analyst Cullen Roche has a great, related quote:
The stock market is the only market where things go on sale and all the customers run out of the store.
Some strong stocks are selling for prices that I suspect we’d love to have taken advantage of some months/years from now when looking in the rearview mirror.
It’s a good time to recall Warren Buffett’s advice in his 2017 letter to shareholders.
Buffett wrote that “there is simply no telling how far stocks can fall in a short period,” but if the market should keep falling, then investors should “heed these lines.” He then quoted Rudyard Kipling’s poem “If”:
If you can keep your head when all about you are losing theirs… If you can wait and not be tired by waiting… If you can think — and not make thoughts your aim… If you can trust yourself when all men doubt you… Yours is the Earth and everything that’s in it.
Good to remember.
Final reminder – we’re less than 24 hours from Louis’ event tomorrow. Click here to instantly save your spot.
Have a good evening,
Jeff Remsburg
