Trump, Nvidia, & Meta: Big Legal Battles and Market Shifts 🚨

Suit & Times Daily Briefing – April 17, 2025

What We’re Covering Today

• 🛑 Judge Finds Trump Administration in Criminal Contempt for Deportation Violations
  A federal judge accuses the Trump administration of criminal contempt after violating orders to halt deportation flights to El Salvador.

• 🚫 Nvidia Discloses U.S. to Limit Sales of Advanced Chips to China
  Nvidia reveals that U.S. export controls will limit the sale of its H20 chips to China, costing the company $5.5 billion.

• 🚨 Pentagon Faces Purge: Third Appointee Placed on Administrative Leave
  A third Pentagon official is placed on leave amid an internal investigation related to unauthorized disclosures and conflicts within the department.

• 📉 Tech Stocks Tumble Amid Trade War Fears, S&P and Nasdaq Drop
  Tech stocks drop as concerns over a potential U.S.-China trade war rise, with Nvidia and other companies feeling the impact.

• 💰 Gold Soars Past $3,300 as Trade War Fears Fuel Safe-Haven Demand
  Gold hits a new record high as trade war fears and a weakening dollar push investors toward the precious metal for safety.

• 📱 Meta’s Antitrust Trial: Sheryl Sandberg Defends Strategy Against Rivals
  Sheryl Sandberg testifies in Meta’s antitrust trial, defending the company’s strategy of acquiring competitors like Instagram and WhatsApp.

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🛑 Judge Finds Trump Administration in Criminal Contempt for Deportation Violations

A federal judge has ruled that there is probable cause to hold the Trump administration in criminal contempt after it violated a court order and sent deportees to El Salvador. U.S. District Judge James E. Boasberg accused the administration of rushing deportations under the Alien Enemies Act, even though he had issued an order preventing the removals.

Boasberg had ruled that deportations could not proceed before individuals were allowed to challenge their removal in court. Despite this, planes full of deportees were sent to El Salvador, leading to accusations that the Trump administration deliberately ignored the court's order. El Salvador’s president, Nayib Bukele, celebrated the arrival of the deportees, mocking the court's ruling with a post saying "Oopsie...too late."

The judge has given the administration until April 23 to remedy the situation or identify the officials responsible for the violation. If the administration fails to comply, Boasberg has warned that he may refer the matter for prosecution.

This case represents an escalating battle between the executive branch and the judiciary over the Trump administration's immigration policies and could set significant legal precedents regarding judicial authority and executive power.

Key Points:

• Contempt of Court: Judge James Boasberg ruled that the Trump administration violated a court order regarding deportations, leading to a potential criminal contempt charge.

• Next Steps: The administration has until April 23 to explain the violation, or Boasberg may refer the matter for prosecution.

This ruling highlights the ongoing conflict between the executive and judicial branches, especially on contentious issues like immigration enforcement.

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🚫 Nvidia Discloses U.S. to Limit Sales of Advanced Chips to China

Nvidia has announced that the U.S. government will proceed with export controls that will restrict its ability to sell one of its most advanced chips, the H20, to China. This move is expected to cost Nvidia about $5.5 billion due to unsold inventory and past sales that are now covered by the new restrictions.

The H20 chip is crucial for powering artificial intelligence systems, and Nvidia designed it specifically to meet U.S. export constraints. However, the chip is now subject to stringent controls that require Nvidia to apply for licenses to sell to Chinese customers. The U.S. government’s decision came after an earlier pause on restrictions, which coincided with Nvidia’s founder Jensen Huang attending a high-profile dinner at Mar-a-Lago.

The development is a significant blow to Nvidia, as China represents one of the company’s largest markets, with $17 billion in sales there in 2024. Despite the challenges, Nvidia also announced plans to invest $500 billion into two new supercomputer factories in the U.S., a move that aligns with the White House’s goal of boosting American manufacturing.

Key Points:

• Export Control Impact: Nvidia reveals that U.S. export controls on the H20 chip will cost the company about $5.5 billion due to unsold inventory and restricted sales to China.

• Nvidia’s Response: The company’s CEO, Jensen Huang, has been lobbying to ease restrictions, and China remains a major market for Nvidia, contributing $17 billion in 2024 sales.

This development highlights the ongoing geopolitical tensions over technology trade and the U.S. government’s efforts to curb China’s access to advanced semiconductor technology.

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🚨 Pentagon Faces Purge: Third Appointee Placed on Administrative Leave

In a dramatic escalation of internal tensions, Colin Carroll, chief of staff to Deputy Secretary of Defense Steve Feinberg, has been placed on administrative leave, becoming the third senior Pentagon appointee to face such action this week. This follows allegations of unauthorized disclosures and growing disagreements with Pentagon Chief of Staff Joe Kasper.

Carroll, who had only been sworn in earlier this year, is now under scrutiny for his alleged role in a broader investigation linked to leaks of sensitive information. His suspension comes on the heels of similar actions against two other senior political appointees, Dan Caldwell and Darin Selnick, both of whom have also been placed on leave as part of the ongoing probe.

The investigation stems from concerns over unauthorized disclosures within the Pentagon, which Kasper has vowed to address rigorously. While Pentagon officials are investigating the matter using polygraphs, the case has sparked significant controversy, especially after Defense Secretary Pete Hegseth himself came under fire for sharing sensitive military details in a group chat, which accidentally included a reporter.

Key Points:

• Internal Tensions: Colin Carroll, along with two other appointees, has been placed on administrative leave amid investigations into unauthorized disclosures within the Pentagon.

• Investigation Focus: The Pentagon is conducting an investigation, including polygraph tests, with a focus on leaks and sensitive information shared by top officials, including Defense Secretary Pete Hegseth.

This situation underscores the growing concerns over leaks and internal conflicts at the Pentagon, as the department seeks to ensure accountability and protect national security information.

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📉 Tech Stocks Tumble Amid Trade War Fears, S&P and Nasdaq Drop

In a volatile day for the markets, major averages saw significant losses, led by a tech rout fueled by escalating trade war fears between the U.S. and China. The S&P 500 dropped 0.6%, and the Nasdaq Composite lost 1.4%, as Nvidia’s need for a special license to ship graphic processing units (GPUs) to China added to concerns about the ongoing trade tensions. Despite some losses, the Dow Jones Industrial Average turned marginally higher in a day of seesaw trading.

Key Points:

• Nvidia's Setback: Nvidia fell by 6.5% after the U.S. government mandated a special license for shipping GPUs to China, exacerbating trade war concerns.

• Market Mood Shifts: Wall Street's optimism from earlier in the week faded as fears of escalating trade tensions between the U.S. and China reignited, dampening investor sentiment.

As trade war fears persist, the economic outlook is clouded by rising concerns over tariffs, trade regulations, and their potential long-term impact on market stability.

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💰 Gold Soars Past $3,300 as Trade War Fears Fuel Safe-Haven Demand

Gold prices continue to break records, with the precious metal soaring above $3,300 per ounce, as investors flock to it amid growing concerns about escalating U.S.-China trade tensions and a weaker dollar. Spot gold hit an all-time high of $3,332.89 before settling at $3,327.97, driven by fears of a global recession and uncertainty surrounding U.S. tariffs. The rally marks a significant surge in demand for safe-haven assets as financial markets react to the mounting pressure on global trade.

Key Points:

• Record Gold Prices: Gold hit a new record of $3,332.89, rising by 3.1% as investors seek shelter from the ongoing U.S.-China tariff conflict.

• Dollar Weakness Boosts Gold: A weakening U.S. dollar, now at a three-year low, has made gold more attractive to global investors, further propelling its price surge.

As global tensions continue to affect investor sentiment, gold remains a top safe-haven asset, with further price hikes possible depending on the developments in the trade war.

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📱 Meta’s Antitrust Trial: Sheryl Sandberg Defends Strategy Against Rivals

Sheryl Sandberg, former COO of Meta, took the stand in a high-stakes antitrust trial, defending the company’s strategy of acquiring competitors like Instagram and WhatsApp. In response to government claims that Meta engaged in a "buy-or-bury" strategy to eliminate competition, Sandberg explained that Meta’s actions were in line with standard business practices and not aimed at crushing potential rivals.

Key Points:

• Courtroom Drama: Sandberg rebutted accusations about blocking ads from rivals like Google+, highlighting a competitive environment rather than anti-competitive behavior.

• Zuckerberg’s Stand: CEO Mark Zuckerberg testified that Meta faced significant competition from other tech giants like TikTok and YouTube, defending the acquisitions as a business necessity to maintain its position in the market.

The trial is a pivotal moment for the tech industry, as the outcome could shape future antitrust regulations and the power dynamics among social media companies.

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💡 That’s it for today’s briefing. Stay sharp, stay informed, and we’ll see you tomorrow!