Market Beats | Target Lowers Sales Forecast Amid Tariff Pressure; Nvidia CEO Criticizes US Export Curbs; Bloomberg Terminal Outage Disrupts Trading; BYD Launches €19,990 Dolphin Surf EV in Europe; US House Speaker Johnson Secures SALT Deal; Hong Kong Elites Forced to Sell Mansions

—— Target Lowers Sales Forecast Amid Tariff Pressure; Nvidia CEO Criticizes US Export Curbs; Bloomberg Terminal Outage Disrupts Trading; BYD Launches €19,990 Dolphin Surf EV in Europe; US House Speaker Johnson Secures SALT Deal; Hong Kong Elites Forced to Sell Mansions

1. Target Lowers Sales Forecast Amid Tariff Pressure

Target Corp. slashed its annual sales forecast after reporting a larger-than-expected drop in comparable sales, citing pressure from tariffs, political boycotts, and weakened consumer confidence.

The Minneapolis-based retailer now expects net sales to fall by a low single-digit percentage this year, down from its previous forecast of about 1% growth. In the quarter ending May 3, comparable sales declined 3.8% — a steeper drop than analysts had projected — due to reduced store traffic and lower spending per visit.

“This performance is not where we need to be,” said CEO Brian Cornell on a call with reporters. “We need to act with more urgency to bring guests back into our stores and onto our digital platforms.”

Cornell pointed to a combination of declining discretionary spending, uncertain tariff policy, and backlash over Target’s decision to pause certain diversity initiatives as key headwinds. Despite these challenges, he highlighted e-commerce as a relative bright spot in the company’s performance.

Target has struggled to regain consistent growth over the past two years amid economic volatility and inflation-driven changes in consumer behavior. Spending on non-essential goods such as apparel and home décor continues to lag.

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2. Nvidia CEO Criticizes US Export Curbs

Nvidia Corp. CEO Jensen Huang strongly criticized US export restrictions targeting China, calling them a “failure” that risks pushing American tech firms out of the world’s fastest-growing AI market.

Speaking at Computex in Taipei, Huang urged the Biden administration to lower export barriers that prevent US companies from selling advanced AI chips to China. He warned that without access to this $50 billion market — expected in 2026 — American firms like Nvidia risk losing ground to emerging rivals such as Huawei Technologies Co.

“Local customers will spend that money elsewhere if we’re not allowed in,” Huang said, arguing that the current restrictions hurt the US more than its intended target.

While the Biden administration has eased some restrictions for allies like Saudi Arabia and the UAE, curbs specifically aimed at China remain firmly in place. Huang’s comments add to growing pressure from within the US tech industry to reassess those policies.

Nvidia, which sits at the center of the global AI infrastructure boom, stands to benefit from broader access to international markets. Huang’s position aligns with voices like White House AI adviser David Sacks, who advocates for building the global AI ecosystem atop an American-designed technology stack.

Although the Trump administration has begun rolling back some restrictions on global chip shipments, officials are still working on a new regulatory framework that may continue to limit China’s access.

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3. Bloomberg Terminal Outage Disrupts Trading

Bloomberg, the global markets data and media provider, experienced a significant service disruption on Wednesday morning that affected thousands of traders worldwide, delaying UK and EU sovereign bond auctions and preventing access to real-time pricing.

Subscribers to Bloomberg’s $28,000-per-year terminal service reported widespread outages and severe delays that left them unable to execute trades. The malfunction disrupted one of the most critical tools used by financial professionals for data, analytics, and communication.

By around 11 a.m. local time, services appeared to be recovering, roughly 90 minutes after the initial problems were first reported.

“Our systems are returning to normal operations and Terminal functionality has been restored,” Bloomberg said in a statement.

The Bloomberg Terminal, a staple of trading floors for 35 years since its launch by Michael Bloomberg, provides pricing, analytics, and messaging tools used daily by traders, bankers, and asset managers.

“I can’t remember this level of non-functioning,” said a London-based fund manager. “We’ve been told not to trade.” Another market participant likened the disruption to “betting on a match you can’t see or know the score,” noting that trading volumes were lower as a result.

While competitors like LSEG’s Workspace and FactSet offer similar services, Bloomberg remains widely regarded as the gold standard in financial data infrastructure.

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4. BYD Launches €19,990 Dolphin Surf EV in Europe

BYD Co. is intensifying the electric vehicle (EV) price battle in Europe with the launch of the Dolphin Surf, a fully electric hatchback priced as low as €19,990 ($21,700) in Germany — undercutting many Western rivals.

Unveiled in Berlin on Wednesday, the Dolphin Surf will initially sell at a promotional price until the end of June, rising to €22,990 thereafter. The model offers a 220-kilometer (137-mile) driving range and comes equipped with premium features such as a rotating touchscreen, keyless entry, and advanced cruise control.

This launch strengthens BYD’s push into the European market at a time when Chinese EV manufacturers have seen slowing momentum on the continent. European automakers, once challenged by China’s cost advantage, are now responding with their own budget-friendly models.

The Dolphin Surf, a four-seater compact EV, will begin deliveries in June and is positioned to compete directly with entry-level models from Renault, Stellantis, and Volkswagen. Renault’s electric R5 starts at €25,000, while the Twingo E-Tech and Stellantis’ Citroën ë-C3 are expected to be priced below €20,000.

Volkswagen plans to release its ID.2all compact EV next year starting at €25,000 and is targeting a €20,000 price point for a smaller EV due in 2027.

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5. US House Speaker Johnson Secures SALT Deal

US House Speaker Mike Johnson said Wednesday that an agreement had been reached with Republican holdouts over the contentious state and local tax (SALT) deduction cap, clearing the way for Donald Trump’s $3 trillion fiscal package to move forward.

Johnson confirmed that the bill could reach the House floor as early as Wednesday evening. Republicans currently hold a narrow 220–213 majority in the chamber.

“We plan to do it tonight if possible,” Johnson told reporters.

The sweeping bill — which includes deep spending cuts to programs such as Medicaid and expansive tax breaks — has drawn intense scrutiny from global financial markets, particularly amid concerns over the ballooning US fiscal deficit.

Bond market jitters have already begun to surface. The yield on 30-year US Treasuries rose 0.05 percentage points to 5.02% on Wednesday as investors anticipated a surge in government debt issuance if the bill passes.

A key sticking point had been opposition from Republican lawmakers in high-tax states, who objected to the current $10,000 cap on SALT deductions. Johnson said a compromise had been reached to raise the deduction cap, though specific details were not disclosed.

Trump has called the package his “big, beautiful bill,” positioning it as a centerpiece of his fiscal agenda.

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6. Hong Kong Elites Forced to Sell Mansions

Hong Kong’s wealthiest families are increasingly being forced to sell their luxury homes, including those they live in, as the city’s prolonged property downturn and years of high interest rates take their toll.

This week, a sea-view villa formerly owned by businessman Chan Ping Che was listed by receivers for HK$430 million (US$55 million). Chan, known as Hong Kong’s “King of Cassettes,” defaulted on a HK$350 million loan from Fubon Bank Hong Kong Ltd. earlier this year, he confirmed in a phone interview. The mansion, where his family had lived since the 1980s, was seized by creditors last month after failing to sell on the open market.

Meanwhile, Gale Well Group Ltd. CEO Jacinto Tong sold his penthouse for HK$138 million in May, according to land registry records.

These high-profile sales are part of a wave of distressed listings in Hong Kong’s luxury housing sector, reflecting the pressure facing even the city’s elite. According to the Centaline Property Centa-City Leading Index, residential prices remain near an eight-year low despite recent cuts in local borrowing costs.

Commercial property is also suffering: Colliers International forecasts that Hong Kong’s prime office rents will fall by 8% to 10% this year, as vacancies continue to rise.

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7. Federal Reserve to Cut Workforce by 10%

The Federal Reserve plans to reduce its workforce by approximately 10% over the next couple of years, largely through attrition and a voluntary deferred resignation program offered to retirement-eligible employees.

Fed Chair Jerome Powell announced the initiative in a memo to staff, stating that the move aims to modernize operations and ensure the central bank remains appropriately sized to meet its statutory mission.

“I have directed the leadership of the Federal Reserve, here at the Board and across the System, to find incremental ways to consolidate functions where appropriate, modernize some business practices and ensure that we are right-sized and able to meet our statutory mission,” Powell said.

The voluntary deferred resignation program will be available to Board of Governors staff who are fully eligible to retire by December 31, 2027, similar to a program the Fed used in 1997.

As of 2023, the Fed reported 23,950 employees across its system. The 2024 budget had anticipated increasing staff to 24,553 — a 2.5% rise — making this a sharp reversal in hiring trajectory.

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