CNBC's "Fast Money" Podcast Episode Summary
Episode Title: Stocks Sink as Inflation Fears Rise, and Counting Down to “Liberation Day”
Release Date: March 28, 2025
Hosts: Melissa Lee, Tim Seymour, Karen Feiderman, Courtney Garcia, Guy Adami

Introduction

In the March 28, 2025 episode of CNBC's "Fast Money," host Melissa Lee and her panel of top traders delve into the day's tumultuous market movements, driven by rising inflation fears and looming tariff implementations dubbed "Liberation Day." The episode provides a comprehensive analysis of the market’s current state, upcoming economic events, and significant corporate developments affecting investors.

Market Overview: Inflation Concerns and Tariffs

The episode opens with a sharp sell-off in the stock market, primarily led by technology stocks. The Nasdaq plunged over 2.5%, nearing its lowest close of the year, signaling a potential for the worst quarter in nearly three years. The "Magnificent Seven" tech giants collectively lost over half a trillion dollars in a single session, dragging down the S&P, Dow, and Russell 2000 indices.

Melissa Lee sets the stage:
"Stocks selling off on the back of a grim inflation outlook and continued worries about Liberation Day, AKA Tariff Day next week." [00:22]

Tim Seymour prompts the discussion by highlighting the convergence of hot inflation data and upcoming tariffs:
"With just one trading day left in Q1, the index is pacing for its worst quarter in nearly three years." [01:00]

Karen Feiderman underscores the inevitability of increased volatility:
"Volatility, absolutely. Pain I think comes along with volatility." [02:42]

The panel debates whether the ongoing inflation data and the anticipation of new tariffs will lead to sustained market turbulence. Guy Adami emphasizes the uncertainty surrounding tariffs:
"The big thing that's on investors' minds right now is tariffs, which are happening next week." [05:38]

Federal Reserve’s Dilemma and Economic Indicators

The discussion shifts to the Federal Reserve's challenges in addressing inflation amid uncertain economic signals. Ben Emmons, a senior investment executive, explains how tariff-induced front-loading of imports is artificially inflating the Fed’s Preferred Price Index of Consumer Expenditures (PCE), complicating policy decisions.

Ben Emmons:
"The tariff effect is starting to come through... people start to continue to front load a lot of imports to try to get ahead of the tariffs. So that in itself drives up inflation while we're having what it looks like somewhat of a slowdown in spending." [10:18]

Tim Seymour adds context with insights from market analysts:
"The Fed is stuck... they probably will do nothing but the tendency is to want to fight inflation first until that jobs market starts to really fall apart." [05:38]

Courtney Garcia and Karen Feiderman discuss the potential for stagflation—a combination of stagnant growth and inflation—highlighting the Fed's precarious position.

CoreWeave IPO: A Bellwether for Tech Market Sentiment

One of the episode's focal points is CoreWeave’s IPO, the largest tech IPO since 2021. The stock closed unchanged despite high expectations, raising concerns about market appetite for new tech offerings.

Christina Parts and Pelley, CNBC reporters covering the IPO, provide detailed insights:
"Core Weave CEO Mike Intrader and I were chatting right over there on this set earlier and he wanted me to know that their debt is manageable because it's systematically paid down through reliable revenue streams like Microsoft contracts." [15:24]

Dan Nathan, an analyst, expresses skepticism regarding CoreWeave’s sustainability:
"I wouldn't buy this with my worst enemy's money. These GPUs are going to be useless in about two years from now." [19:11]

The panel discusses the concentration risk associated with CoreWeave's reliance on major clients like Microsoft and the potential for contract cancellations, which could jeopardize the company's financial stability.

Lululemon’s Earnings Drop: Implications for Consumer Health

The panel shifts focus to Lululemon's disappointing earnings, which saw the stock drop over 14% due to struggling store traffic and sales amid economic uncertainty.

Tim Seymour analyzes the situation:
"The slowing US Comps are a sign that US margins are going to come down." [27:42]

Guy Adami questions the company's explanation:
"They said this isn't a problem with Lululemon, it's the problem with the overall consumer. But I do question if that's the case." [28:15]

Karen Feiderman highlights Lululemon's broader business segments, noting that while GLP-1s (a class of obesity drugs) contribute significantly to revenue, the rest of their business remains undervalued despite strong performance in other areas like insulin and rare diseases.

Amazon’s Performance: A Buying Opportunity?

Amazon experienced its eighth straight losing week, dropping nearly 20%. Despite the downturn, some panelists view this as a potential buying opportunity.

Guy Adami sees the dip as a chance to invest:
"I think this is something that you want to take advantage of and I think I see this with a lot of your Mag 7. I think it is getting oversold here." [24:59]

Courtney Garcia concurs, emphasizing Amazon's defensive business segments and growth in cloud services:
"I'm inclined to buy more. I'll wait, I think I'll get more opportunity than I care for tomorrow next week." [25:21]

Tim Seymour adds a valuation perspective:
"The valuation on Amazon is not terrible... I think the expectations for Macie [likely a typo and meant to refer to Amazon] when they report is that if they reaffirm guidance, I think it's bullish for the stock." [26:26]

Elon Musk’s Acquisition of X AI: A Major Tech Move

Breaking news interrupts the regular discussion as Julia Borson reports on Elon Musk’s acquisition of X AI:

Elon Musk announced on X (formerly Twitter) that he has acquired X AI in an all-stock transaction, valuing X AI at $80 billion and X (the platform) at $33 billion, adjusted for $12 billion in debt. Musk highlighted the synergies between X AI's advanced AI capabilities and X's extensive user base, aiming to create a platform that "actively accelerates human progress."

Novo Nordisk’s Decline: Market Concerns in Pharma

Novo Nordisk, a leading pharmaceutical company, faced its worst performance since 2002, dropping over 23% in March. Analysts from Bank of America anticipate an earnings miss due to sluggish sales of Ozempic and Wegovy, leading to downward guidance revisions.

Jared Hulse from Mizuho Securities explains:
"The stock was more than double from here last summer... the street is often unkind and I think it's basically voting now and saying that they believe this is too little too late." [37:19]

Courtney Garcia questions whether the pressure from dominant players like Lilly affects Novo Nordisk:
"Do you think that any of that overall big Picture Weight on GLP1s is also weighing on Novo or is it all idiosyncratic?" [39:41]

Tim Seymour shares a bullish stance, believing that if Novo reaffirms its guidance, the current valuation could be defensible despite the challenges.

Trader's Charts: Predicting Q2 Market Moves

As the episode progresses, the traders present their most critical charts to anticipate Q2 trends:

1. Guy Adami emphasizes diversification beyond the "Magnificent Seven":
   "The S&P 500 is down about 5%... large cap ex mag 7 is down 0.3% since the beginning of the year." [32:23]

2. Tim Seymour highlights the relative performance of the semiconductor index versus the S&P 500:
   "Semis make a new relative low today... they stopped making relative highs against the S&P back in June." [32:54]

3. Courtney Garcia focuses on the 10-year Treasury yield as a proxy for economic health:
   "Today what it was telling us is concern, concern, concern about stagflation." [33:53]

4. Karen Feiderman points to gold markets as a prelude to broader economic fears:
   "Gold market is sort of portending, I think what's out there... sort of scary." [34:10]

Closing Remarks and Final Thoughts

In the final segment, the traders offer their last words as they prepare for the upcoming week:

• Tim Seymour anticipates critical payroll numbers and their impact on the Fed's policies:
  "We're going to hear what we're going to hear... these are starting to become critical numbers for the Fed." [42:22]

• Courtney Garcia maintains a long-term investment perspective, advocating for buying undervalued stocks amid volatility:
  "My strong inclination is to buy... especially lower than $49." [42:37]

• Guy Adami encourages staying invested and diversifying portfolios:
  "You want to stay invested here... make sure you're diversified and buy into these dips." [42:53]

• Karen Feiderman warns of potential stagflation if job numbers deteriorate:
  "If the job number deteriorates, we're staring at stagflation." [43:29]

The episode concludes with a reminder of upcoming segments and events, encouraging listeners to stay informed and engaged with the market's evolving landscape.

Conclusion

The March 28 episode of "Fast Money" provides a deep dive into the current economic challenges facing the markets, including inflation pressures, impending tariffs, and significant corporate performances. The traders offer a blend of caution and opportunism, advising investors to remain diversified and vigilant amid the prevailing uncertainties. With key events like Liberation Day and critical earnings reports on the horizon, the episode underscores the importance of strategic decision-making to navigate the volatile financial environment.