Tariff Tussle: Market Volatility Breakdown

Fresh news and strategies for traders. SPY Trader episode #1071. Alright folks, it's your pal, Chip Chisel, here with Spy Trader! It's 12 pm on Friday, April 4th, 2025, Pacific time, and things are looking a little spicy in the market. How do you know a trader is out on a date? They keep checking their phone for market updates! Let's dive into what's moving the needle today. The S&P 500 is down, folks, down 4.84% in the last 24 hours and a hefty 5.25% for the week. Currently, we're sitting at 5,177.30 USD. Not a pretty picture, but hey, that's why you tune in, right? Newswise, those newly announced tariffs are the big kahuna. Especially the ones on automobiles. We're talking a 25% tariff on all nonU.S. made autos, and everyone's waiting to see what reciprocal tariffs are coming down the pike after yesterday's announcement. This is causing major volatility. These tariffs went into effect yesterday, targeting vehicles first, with auto parts getting hit by May 3rd. On the bright side, European and Japanese banks are doing their thing, riding high on interest rates and fee income. European defense and aerospace are also up thanks to increased EU defense spending. And China's tech sector? Seeing some love because of better earnings and the AI hype. Now, let's talk sectors. Consumer Discretionary is lagging, and a big reason is Tesla. Meanwhile, Health Care and Financials are looking like the value plays right now. The economy is showing some mixed signals. GDP growth slowed down in Q4 of 2024 to 2.3%, and forecasts for this year are around 1.7%. There's even talk of negative GDP in Q1. Inflation is still above the Fed's 2% target. The core PCE gained 2.6% yearoveryear in January, and these tariffs could make it worse. Unemployment ticked up to 4.1% in February, and job growth is slowing. What does this mean for you, the savvy trader? Here’s what Chip recommends: Diversify! Don't put all your eggs in one basket, especially with all this tariff talk. Balance your investments between growth and value. Take a look at health care and financials. They seem less exposed to all this tariff drama. Focus on companies with strong cash flow and low debt. These are your safe harbors in a storm. Stay informed. Economic data is your friend. So, there you have it. Keep your head on a swivel, and remember, even when the market's down, there's always opportunity. But hey, I'm just a funny podcast host. Consult with a real financial advisor before making any moves!