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US markets emerged as the biggest loser from Trump's sweeping tariffs, with the S&P suffering its second-biggest market cap wipeout ever. The selloff was so deep that L/S funds erased any and all YTD gains in one day. Major players like Citadel aren't doing too good either.

Interviews can be a different ball-game even when you've mastered the knowledge and Training the Street knows that best. Check 'em out to make sure you crush those interviews when the day comes. Whether its technicals or behavioral, buy-side or sell-side, Training the Street got you covered.

Let's dive in.

Before The Bell

As of 4/3/2025 market close.

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Markets

  • US stocks plummeted yesterday in response to sweeping US tariffs 

    • All three major indexes posted their biggest drops since Covid

    • S&P shed $2.5T in the second-biggest market cap wipeout ever

    • S&P is at its lowest since Trump's election victory and down 12% from its February ATH

    • Small caps Russell 2000 entered a bear market, down 22% from its 2021 ATH

    • 'Magnificent 7' stocks lost over $1T in market cap

    • VIX jumped to the highest since August 

  • Europe's Stoxx 600 fell 2.6% to its lowest since mid-January

  • Japan's Nikkei 225 entered a bear market, down 21% from its July ATH

  • South African stocks fell 3.4% in their biggest drop since April 2022

  • US 10Y yield fell below 4% for the first time since Trump's election victory

  • US corporate junk spreads widened 53 bps to 387 bps in the worst selloff since Covid

    • Global corporate junk spreads also spiked 45 bps in the worst selloff since Covid from historical lows to 386 bps, the highest since August

  • US investment grade credit risk hit the highest since November 2023

  • Commodities slumped by the most since 2022

  • Dollar fell 1.9% in its worst day since 2022

    • Euro and yen hit their highest versus dollar since October

Earnings

  • GUESS beat Q4 earnings and revenue estimates and announced restructuring plans that includes closing underperforming stores and consolidating infrastructure (WSJ)

  • Full calendar here

Prediction Markets

  • Turns out your stocks aren't tariff proof. Maybe March Madness is…

  • Trade your predictions on a range of events, only on Kalshi. Sign up with code LIT and get a $20 bonus when you trade $100!

Headline Roundup

  • US is open to tariff negotiations (CNBC)

  • US economy slows heading into tariffs turbulence (RT)

  • Tariffs may be largest US tax hike since 1968 (RT)

  • Layoff announcements surged to the most since Covid (CNBC)

  • L/S hedge funds erased all YTD gains in one day (RT)

  • Major hedge funds including Millennium, Citadel, Pershing Square, and Brevan Howard are negative YTD (BBG)

  • Hedge funds frazzled by tariff chaos contemplate sitting it out (BBG)

  • Asia stocks saw the biggest outflows in 15 years in Q1 (RT)

  • Canada ETFs saw record inflows in March amid volatility (BBG)

  • Canada's AIMCo returned 12.3% last year (BBG)

  • Activist Elliott named nominees for Phillips 66 board amid proxy fight (WSJ)

  • Private credit firms are eyeing the $50T mortgage market (BBG)

  • Billionaires lost a combined $200B in one day (BBG)

  • Deloitte will lay off US consultants amid DOGE crackdown (WSJ)

  • US escalates university crackdown on Harvard and Brown (WSJ)

A Message from Training the Street

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Deal Flow

M&A / Investments

  • Brookfield agreed to acquire Colonial Pipeline, the largest US fuel transportation system, for $9B, including debt 

  • French grocer Carrefour increased its offer to take-private its Brazilian unit Atacadao to ~$3.2B, up 10% from its initial bid

  • Blackstone is exploring a sale of two AirTrunk data centers in Sydney and Melbourne, valued at a combined $2.6B

  • Primary Health Properties submitted a ~$2B cash-and-stock bid for UK healthcare REIT Assura

  • Guatemalan conglomerate Castillo Hermanos will acquire SunnyD-maker Harvest Hill for ~$1.5B, including debt

  • Hailey Bieber is exploring a sale of her makeup brand Rhode, which could be valued at over $1B

  • Lowell Group, Europe's biggest debt collector owned by PE firm Permira and Canada's OTPP, is exploring a sale of its Nordic operations at an ~$800M valuation

  • Hershey's will acquire popcorn brand LesserEvil in a $700M deal

  • KKR withdrew from a consortium of PE firms exploring a takeover of German drug packaging giant Gerresheimer

  • McLaren will merge with UK luxury EV startup Forseven 

  • Intel and TSMC tentatively agreed to form a US chipmaking JV

  • PwC China plans to spin off its Dark Lab cyber security arm in a private partner-led buyout 

VC

  • Fintech Plaid raised a $575M round at a $6.1B valuation led by Franklin Templeton

  • Runway, a startup developing a range of GenAI models for media production, raised a $308M Series D at a $3B valuation led by General Atlantic

  • Flowdesk, a startup helping crypto issuers manage liquidity, raised $102M from HV Capital, Eurazeo, Cathay Innovation, BlackRock, and more

  • Data platform Redpanda raised a $100M Series D at a $1B valuation led by GV

  • Hydrolix, a data lake platform, raised an $80M Series C led by QED Investors

  • Solace, a digital health platform that connects patients with expert health advocates, raised a $60M Series B led by Menlo Ventures

  • Space solar startup Aetherflux raised a $50M Series A led by Index Ventures and Interlagos

  • Unframe, an all-in-one turnkey AI platform for global enterprises, raised $50M in funding from Bessemer Venture Partners, TLV Partners, and more

  • Adaptive Security, an AI-powered social engineering prevention solutions, raised a $43M Series A led by a16z and OpenAI

  • Thatch, a startup transforming the health insurance experience for employers and employees, raised a $40M Series B led by Index Ventures

  • Ecoat, a French greentech startup helping decarbonize the paints and coatings sector, raised $23M in funding from Yotta Capital Partners, ECBF, and Starquest Capital

  • Djamo, a YC-backed West Africa neobank, raised a $17M round led by Janngo Capital

  • Fairly Made, a startup helping fashion brands become more sustainable, raised a $16.6M round led by BNP Paribas, GET Fund, and more

  • Ultra, a UK-based destination for gamers, publishers, and developers, raised a $12M round led by NOIA Capital

  • Cancer care startup Daymark Health raised an $11.5M seed round led by Maverick Ventures and Yosemite

  • Vivere Partners, a specialty insurance platform, raised a $7.5M Series A led by General Catalyst, Pathlight Ventures, and Greenlight Re

  • Unravel, an AI-powered video commerce platform, raised a $7M Series A led by Nauta Capital

  • Hello Soju, a ready-to-drink sparkling soju brand, raised a $6.8M round led by Kleiner Perkins and Ballistic Ventures

  • Luxury-focused insurance startup GRACE raised a $6.5M seed round led by FinTech Collective and Speedinvest

  • HeroWear, a startup specializing in occupational exosuit solutions, raised a $5M Series A led by White Road Investments and Engage

  • SAT prep startup Linus raised a $5M seed round led by Owl Ventures 

IPO / Direct Listings / Issuances / Block Trades

  • India plans to sell a 4.83% stake in Mazagon Dock Shipbuilders for $337M

  • Investors associated with activist Yoshiaki Murakami acquired a 5.2% stake in Fuji Media Holdings, proposing significant changes to management

Debt

  • Blackstone-backed data center firm AirTrunk is seeking a $1.7B green loan to fund its data center campus in Singapore

  • Tencent-backed streaming media firm China Ruyi is aiming to raise $300M-$500M in convertible bonds next week

  • Fertility financing company Future Family raised $400M in private credit from Clear Haven Capital Management 

  • India's largest crude O&G company ONGC raised a $200 million loan from state-owned Bank of India

Bankruptcy / Restructuring / Distressed

  • CMX Cinemas is weighing selling assets or closing theaters as box offices struggle

Fundraising

  • Investindustrial raised $4.3B for its eighth flagship MM PE fund

  • Morgan Stanley is raising $680M for a Japan real estate fund

  • Moneta Ventures raised $250M for its third fund to invest in West Coast and Texas startups

  • VC Lux Capital is seeking to raise $200M for a debut defense-tech fund

  • Ballistic Ventures is seeking to raise $100M for a third fund

Crypto Sum Snapshot

  • Crypto stays resilient as US tariffs rattle global markets

  • Crypto exchange Gemini is expanding to Miami

  • Check out our Crypto Sum newsletter for the full stories on everything crypto!

Exec’s Picks

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  • AXIOS gave a breakdown of the oversimple formula that US used to calculate its historical sweeping global tariffs.

Financial Services Recruiting 💼

If you're a junior banker looking for your next career move, check out Litney Partners, a recruiting firm established by Litquidity and Whitney Partners (the oldest purely financial services executive search and consulting firm).

We aim to place strong candidates across private equity, hedge funds, venture capital, growth equity, credit, and investment banking.

We're currently seeking talent for some incredible roles. Head over to Litney Partners to drop your resume / create your profile and we'd love to get in touch!

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*DISCLAIMER: Investment advice provided by Autopilot Advisers, LLC ("Autopilot"), an SEC-registered investment adviser. Past performance does not guarantee future results. Investing carries risks, including loss of principal. As always, be smart out there. Litquidity is compensated to promote AutoPilot. Compensation details available upon request.