War continues, but inflation fears ease; Trump nominates Kevin Warsh for Fed chair.

U.S. Senate Votes Against Limiting Trump's War Powers Against Iran

On March 4, the U.S. Senate held a procedural vote on a bipartisan resolution aimed at restricting presidential war powers, resulting in 52 votes against and 47 in favor. This decision effectively blocks a resolution intended to "stop airstrikes against Iran and require congressional authorization for any hostile actions against Iran." According to the U.S. Constitution, only Congress can authorize war.

Iran Prepares for Long-Term Conflict

Iran's government has initiated emergency plans to prepare for a potential long-term war, focusing on securing essential goods, supporting livelihoods, and maintaining production inputs. Officials stated that this plan, approved by the president, aims to ensure economic stability and meet supply demands in the event of prolonged conflict.

U.S.-Iran Tensions Escalate

U.S. Defense Secretary indicated that the conflict with Iran could last eight weeks or longer, while Iran denied seeking negotiations. The U.S. military has reportedly attacked over 20 Iranian vessels and struck more than 2,000 Iranian targets, with no plans to deploy ground troops. Iran's leadership has stated they have no intention of negotiating with the U.S.

Economic and Market Implications

U.S. Treasury Secretary announced that a 15% global tariff could be implemented this week, along with plans to provide maritime insurance for vessels in the Persian Gulf.

Trump Nominates Kevin Warsh for Federal Reserve Chair

President Trump has officially nominated Kevin Warsh to succeed Jerome Powell as the next Federal Reserve Chair. If confirmed by the Senate, Warsh will take over the position.

Federal Reserve Economic Outlook

The Federal Reserve's Beige Book indicates an optimistic economic outlook, with most regions expecting modest to moderate growth in the coming months. However, some areas reported stagnant or declining economic activity.

Global Energy Market Dynamics

Russian President Putin suggested that Russia might proactively cut off gas supplies to Europe, given the rising energy prices and the EU's plans to ban imports of Russian gas.

Technology and Market Developments

• U.S. Stock Market Performance: Major U.S. indices rose, with the Nasdaq gaining over 1%. Notable tech stocks like AMD and Micron surged nearly 6%.

• Cryptocurrency Stocks: Coinbase saw a significant increase of over 14% as it launched its stock trading feature.

• AI and Semiconductor Developments: Companies like Intel and AMD reported strong demand for server CPUs, while Meta plans to develop custom silicon for AI applications.

Notable Stock Movements

• Broadcom: Reported a 29% year-over-year revenue increase and announced a new stock buyback plan.

• NVIDIA: CEO Jensen Huang emphasized the company's investment in AI and its potential for future growth.

• Apple: Launched the $599 MacBook Neo, targeting budget-conscious consumers and competing with Chromebooks.

Market Summary

The market is reacting positively to various economic indicators and corporate earnings reports, with significant movements in tech and semiconductor stocks.