Today's News You Need2Know

• Dow plunges more than 1,000 points

• How much money did Big Tech make in Q1?

• Instagram tries using AI to determine teens’ age

• ‘Sinners’ tops weekend box office

• Google faces off with U.S. government

Companies mentioned in today’s newsletter

$AAPL ( ▲ 2.52% ) , $MSFT ( ▲ 1.13% ) , $GOOGL ( ▲ 1.42% ) , $AMZN ( ▲ 2.63% ) , $NVDA ( ▲ 2.18% ) , $META ( ▲ 0.45% ) , $TSLA ( ▲ 3.47% )  

Dow plunges more than 1,000 points

Two things happened yesterday: One, Wall Street saw a sea of red yesterday as the Dow Jones Industrial Average $DJI ( ▲ 1.49% ) plummeted over 1,000 points. And two, amid the turmoil President Trump renewed his public criticism of Federal Reserve Chair Jerome Powell.

Pointing to the central bank's policies as a drag on the economy, Trump expressed his dissatisfaction. He has previously been vocal, stating the Fed is "the only problem our economy has" and questioning Powell's feel for the market dynamics driving the sell-off. This latest salvo continues a pattern of challenging the Federal Reserve's independence, particularly regarding interest rate decisions.

While facing presidential pressure, Powell and the Federal Reserve have consistently maintained their focus on the institution's dual mandate: maximizing employment and maintaining stable prices. Powell often emphasizes that the Fed's decisions are data-dependent and aimed at sustaining the economic expansion, independent of short-term political considerations.

The clash between the White House and the Fed adds another layer of uncertainty for investors already grappling with volatile market conditions and global economic concerns. You can weigh in on it, of course, in our daily poll below. 👇🏻

How much money did Big Tech make in Q1?

The titans of tech, collectively dubbed the "Magnificent Seven," are heading into a crucial earnings season, but they're doing so on shaky ground. Recent market volatility, fueled by economic anxieties and broader "Trump turbulence" — encompassing uncertainties around potential policy shifts, regulatory pressures, and geopolitical tensions — has seen these high-flying, mixed-metaphor stocks stumble. The Magnificent Seven’s combined market value has plummeted by $3.8 trillion, or 22%, from their highs in February.

Apple $AAPL ( ▲ 2.52% ) , Microsoft $MSFT ( ▲ 1.13% ) , Alphabet $GOOGL ( ▲ 1.42% ) , Amazon $AMZN ( ▲ 2.63% ) , Nvidia $NVDA ( ▲ 2.18% ) , Meta $META ( ▲ 0.45% ) , and Tesla $TSLA ( ▲ 3.47% ) have been the primary drivers of market gains for much of the past year. Their sheer size means their performance disproportionately impacts major indices. Now, as they prepare to expose their quarterly results, the stakes couldn't be higher. Investors, already jittery from the recent sell-off, are looking for reassurance that the growth stories powering these giants remain intact.

Expectations remain lofty, particularly around advancements in AI, cloud computing strength, and consumer spending resilience reflected in ad revenues and e-commerce. However, any sign of slowing growth or cautious outlooks could exacerbate market fears.

“The mass confusion created by this constant news flow out of the White House is dizzying for the industry and investors and creating massive uncertainty and chaos for companies trying to plan their supply chain, inventory, and demand,” Wedbush Securities analyst Dan Ives told the AP.

From @cheddar

Post of the day: @RonFilipowski

Instagram tries using AI to determine teens’ age

Ensuring users have age-appropriate experiences online is a persistent challenge for social media platforms. Instagram, owned by Meta, is now testing a novel approach: using AI to help determine if users, particularly teens, might be misrepresenting their age to appear older.

Traditional methods like asking for ID uploads or using video selfies for age estimation have faced adoption hurdles and privacy concerns. Instagram's new system aims to be less intrusive by analyzing contextual clues. So, the AI looks at various signals, including the age of a user's followers and, intriguingly, how people wish them happy birthday in posts. For example, messages like "Happy 21st!" versus "Happy Sweet 16!" could provide valuable data points for the AI model as it follows the clues like Inspector Clouseau. “Happy 45th,” meanwhile, could be a dead giveaway.

The AI adds another layer to help verify users are in the correct age bracket — under 18 or over. While the effectiveness and accuracy of this AI “system” are still under evaluation during this testing phase, it won’t be able to beat the foolproof way I used to get wine at the liquor store when I was underage. Walk in, ask for a bottle “for my mum, she says it needs to go well with chicken.” And you were golden. Admittedly, this was in South London in 1990, and I was 11. But still.

Should you check your 401(k) today?

👎

Nope.

‘Sinners’ tops weekend box office

Ryan Coogler's "Sinners" pulled in a substantial $45.6 million in ticket sales across North America during its opening weekend, proving there’s still an appetite for a moody, engaging cinematic experience.

The movie plunges viewers into a stylishly rendered, atmospheric New Orleans, its shadowy streets and distinct culture serving as a backdrop for a pulpy genre mashup. Michael B. Jordan delivers a compelling dual performance as estranged twin brothers whose paths violently diverge amid the city's mystique.

One brother, a musician deeply embedded in the local scene, is forced into a dangerous confrontation. His twin has fallen in with a menacing, shadowy vampire coven, pulling him into a dark underworld. Critics have described the film as a potent and entertaining blend of supernatural horror, gritty crime thriller elements, and intense family drama, focusing on the fractured fraternal bond at its core — just like this newsletter.

Quote of the Day: DJT

Google faces off with U.S. government

Google is confronting an existential threat as the U.S. government tries to break up the company as punishment for turning its revolutionary search engine into an illegal monopoly.

The drama began to unfold Monday in a Washington courtroom as three weeks of hearings kicked off to determine how the company should be penalized for operating a monopoly in search. In its opening arguments, federal antitrust enforcers also urged the court to impose forward-looking remedies to prevent Google from using artificial intelligence to further its dominance.

“This is a moment in time, we’re at an inflection point, will we abandon the search market and surrender them to control of the monopolists or will we let competition prevail and give choice to future generations,” said Justice Department attorney David Dahlquist.

The proceedings, known in legal parlance as a “remedy hearing,” are set to feature a parade of witnesses that includes Google CEO Sundar Pichai.

The Department of Justice is asking a federal judge to order a radical shake-up that would ban Google from striking the multibillion-dollar deals with Apple and other tech companies that shield its search engine from competition, share its repository of valuable user data with rivals and force a sale of its popular Chrome browser.

Google’s attorney, John Schmidtlein, said in his opening statement that the court should take a much lighter touch. He said the government’s heavy-handed proposed remedies wouldn’t boost competition but instead unfairly reward lesser rivals with inferior technology.

“Google won its place in the market fair and square,” Schmidtlein said.

Poll of the Day: Trump vs. Powell

Results from Monday’s four polls:

We asked: Do you think the judge who said he wasn't going to "micromanage the White House" about letting the Associated Press into press briefings...

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ Was right...it's not that big a deal. (146)

🟩🟩🟩🟩🟩🟩 Was wrong...he should have been harder on the administration. (1114)

1260 Votes—via @beehiiv polls

We asked: That 30-centimeter colossal squid…

You answered:

🟨🟨⬜️⬜️⬜️⬜️ Was a huge disappointment (140)

🟩🟩🟩🟩🟩🟩 Is still colossal, even if it's the size of a subway sandwich (328)

468 Votes—via @beehiiv polls

We asked: The Trump administration should be able to reduce the workforce at the CPFB by 90%

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ The judge needs to allow the administration to execute its agenda (92)

🟩🟩🟩🟩🟩🟩 The judge is right to intervene and pause the move on legal grounds (832)

924 Votes—via @beehiiv polls

We asked: The 9% fall in the dollar…

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ Is a buying opportunity. Buy the dip. (68)

🟩🟩🟩🟩🟩🟩 Should have us all freaking out and is a terrible thing. (596)

664 Votes— via @beehiiv polls

Don’t miss: new Alternative Investments show!

Our new Alternative Investments show is streaming wherever you watch Cheddar this Wednesday, April 23, at 8:30 p.m. ET:

In our first episode, dive into the thrilling world where nostalgia meets investment! Forget stocks and bonds — we're talking trading cards. Witness million-dollar deals, legendary collectibles, and the passionate community behind them. From vintage treasures to modern-day chases, discover why trading cards are the hottest alternative asset. Hear from experts, brokers, and even Tom Brady about this explosive market. Beware, it's not just about luck; it's about knowledge, strategy, and a dash of obsession. Get ready to unlock the secrets of the trading card craze, and see if you've got what it takes to play the game. (Hint: You probably haven’t, but those cards are niiiiiiice.) #NotFinancialAdvice