Markets moved on major headlines today, including Trump’s tough talk on tariffs, rumors of Apple dropping Google as its search default, and reports of upcoming changes to chip export restrictions. GAR Capital capitalized on all three, locking in big gains through strategic positioning in HIMS, AAPL, and NVDA.

Daily Market Recap May 7, 2025

Volatility Returns as Fed Holds Line and Trade Tensions Flare

Today’s session delivered a whirlwind of headlines, macro positioning, and sharp intraday swings, driven by developments out of Washington and Wall Street. Here’s what moved the markets:

Fed Holds Firm on Rates, Dismisses Rate Cut Hopes

In a highly anticipated FOMC update, Fed Chair Jerome Powell pushed back against growing market calls for rate cuts. Powell emphasized:

• The labor market remains resilient.
• Inflation, while slowing, is not yet at target.
• There is no data-supported case for immediate rate cuts.

The result? Markets walked back their aggressive dovish pricing - now reflecting just three rate cuts for the remainder of 2025.

⚠️ Stagflation Concerns Resurface

Notably, the FOMC acknowledged a rising risk of stagflation - the undesirable combination of elevated inflation and slowing growth. This spooked some equity bulls and weighed on sentiment into the close.

Trade Tensions: Trump Rules Out Tariff Cuts

Former President Trump made it clear there will be no reduction in tariffs on China. This statement put a swift end to earlier hopes that trade talks could ease, sending a chill across the market.

• Industrial stocks and global tech names took the brunt of the selling pressure as traders repriced for a prolonged trade war environment.

Apple-Google Shakeup Sparks Market Buzz

A fresh rumor hit the wires suggesting Apple AAPL could replace Google GOOG as the default search engine on its devices. No official confirmation yet, but the speculation was enough to move markets.

• Search engine-related names saw increased volatility, while mega-cap tech as a whole felt the tremors.
• We capitalized on this move in real-time—locking in +40% gains on AAPL with our Options Members after the news broke.
• More on this below on how we took advantage of this headline.

Trump Eyes Chip Curbs Reversal - AI Stocks Soar

In a surprise twist, CNBC reported that the Trump administration is preparing to rescind certain chip export restrictions. The news immediately fueled momentum in the AI space.

• The market viewed it as a green light for U.S. chipmakers to re-engage with global demand—particularly boosting names like NVIDIA.
• 💥 Our NVDA NVDA call options, which were deep in the red earlier this week, rallied hard for a +60% gain following the news.
• ➡️ More on this below on how we took advantage of this headline.

How Did GAR Do Today?

🔥 We nailed multiple trades today across different sectors:

✅ HIMS Investment Club Position: +50% gain as the stock craze continues.

✅ AAPL Options: +40% win after catching the news crush on the Apple-Google rumor.

✅ NVDA Calls: +60% recovery and profit after the chip policy news.

🎯 When preparation meets opportunity—trading success follows. That’s exactly what happened today with GAR Capital. AAPL GAINS: NVDAGAINS: HIMS GAINS:

Key Takeaways:

• Rates: The Fed isn’t ready to cut. Watch labor and inflation data closely.
• Trade: Tariff escalation could pressure earnings and sentiment but we won't see this yet in the data.
• Tech/AI: Innovation-friendly policy shifts offer potential tailwinds for U.S. dominance in AI markets-bullish AI tech names.
• Volatility: Expect continued choppiness with macro risks, earnings, and global trade in focus = OPPORTUNITY!

Stay tuned as we continue to track market-moving events and adjust our strategies accordingly. For real-time signals and macro briefings, join us in the Discord!