Market Volatility: Tariff Threats & Mixed Signals

Fresh news and strategies for traders. SPY Trader episode #1018. Alrighty folks, Buck Naked here, your friendly neighborhood financial analyst, ready to break down what's shaking in the stock market. It's 12 pm on Thursday, March 13th, 2025, Pacific Time, and things are looking a little...spicy! What's the stock market's favorite kitchen appliance? The volatility mixer! Okay, okay, I'll stick to the numbers. First up, the big picture: we're seeing a selloff today. The S&P 500 is down 1.2% and flirting with correction territory that's a 10% drop if it closes below 5,529. The Dow is down over 500 points, and the Nasdaq is feeling the pain too, down 1.6%. We're seeing some serious hourtohour swings, so buckle up! Let's talk news. President Trump's threatening tariffs on European wines and alcohol, and that's spooking the market. It's overshadowing some positive economic news, like the recent inflation data. Uncertainty about these tariffs is making businesses and households nervous, which could slow down the whole economy. Speaking of data, the Producer Price Index was lower than expected in February, which is good news on the inflation front. The twoyear Treasury yield even dipped to its lowest point since October! But, the January retail sales report showed a pullback in spending. Mixed signals all around, folks. In company news, Intel is popping! The stock jumped 15.3% after naming LipBu Tan as its CEO. On the flip side, Adobe is down 4% after giving a weaker earnings forecast. Palantir, Super Micro Computer, and Tesla are all down, while Nvidia managed to claw its way back to a small gain. So, what does it all mean? The trade war is the big elephant in the room. These tariff threats are creating uncertainty, plain and simple. Investors are running to the safe corners, like healthcare and utilities, which are holding up better than growth sectors. The economy is giving mixed signals, which isn't helping the overall market mood. Okay, so what should you do? First, make sure your portfolio is diversified. Don't put all your eggs in one basket! Focus on quality companies with solid financials. Think about adding some of those defensive sectors like healthcare, as they tend to hold up better in times like these. Stay informed and keep a longterm perspective. These dips and corrections are normal parts of the market cycle. It might be smart to rethink how much risk you're comfortable with, and if you're feeling lost, chat with a financial advisor. They can help you navigate this crazy market and make the best choices for your situation. Stay cool, and remember, investing is a marathon, not a sprint! Buck Naked, signing off!