Market Dive: Tariffs & Tumbling Stocks

Fresh news and strategies for traders. SPY Trader episode #1003. Hey everyone, and welcome to Spy Trader! I'm your host, Dandy Don, ready to break down the market moves for you. It's Thursday, March 6th, 11AM Pacific Time. Let's dive right into what's shaking up the S&P 500 today.&x20;Today, the U.S. stock markets are down, thanks to concerns about slowing economic growth and those pesky new tariffs that everyone's worried about. The S&P 500 is taking a hit, down 1.4% to 5,759. The Dow isn't looking too hot either, sliding 1.2%, and the Nasdaq is tumbling 1.7%, with tech stocks leading the decline. So, what's causing all this red? Well, recent data is showing the U.S. economy might be weakening. Retail sales dipped 0.9% in January, and layoffs in February reached levels we haven't seen since July 2020. And let's not forget about those tariffs imposed by the Trump administration on Canada, Mexico, and China. People are worried about higher prices and disruptions to businesses. It's like a neverending backandforth, adding to the overall uncertainty. Inflation is also being stubborn, staying above the Federal Reserve's 2% target. Some are even whispering the word 'stagflation,' which is when the economy and job market slow down while inflation rises. Not a pretty picture! Previously, we were riding high on strong consumer spending, a solid labor market, and accelerating corporate profits. But now, those pillars are starting to wobble. What does this all mean for your investments? Expect more volatility as investors react to every little piece of economic data and policy announcement. The CBOE Volatility Index, or VIX, is up, so buckle up! We might also see investors shifting from tech to sectors like healthcare, basic materials, and financial services, or even looking overseas for better deals. It could also mean a 'flight to safety,' with money flowing into gold and U.S. government bonds. Now, for some stockspecific news and how it relates to the S&P 500. While Abercrombie & Fitch had strong results, an analyst lowered their price target due to 'greater macro uncertainty,' highlighting caution about the overall economic outlook. Plus, the tariffs are hitting their operating margin, which is not good! Over in the crypto world, a wallet linked to a Trumpbacked crypto project made some big purchases of Ethereum and Wrapped Bitcoin. This shows how much politics can influence the crypto market, leading to shortterm volatility, which could eventually spill over into the traditional market. On the pharma front, JP Morgan is positive on Kiniksa Pharmaceuticals, which highlights the market's potential reward for companies focusing on specific therapeutic areas and demonstrating strong commercial performance. And speaking of tariffs, they're not just affecting Abercrombie. They're creating uncertainty across the board, potentially impacting corporate earnings and consumer spending. The suggestion is to focus on specific stocks that can weather the storm, like Fortinet in cybersecurity, Texas Roadhouse for restaurants, and Lowe's in home improvement. Also, companies with more women in leadership, particularly CEOs, tend to perform better. Check out Citigroup, Lumen Technologies, PG&E, General Motors, and Expedia Group. These companies, led by female CEOs, are driving positive changes and growth. Finally, Gap's mixed outlook reflects uncertainty in the consumer discretionary sector. Their dividend increase signals some confidence, but watch their upcoming earnings and guidance closely for clues about the broader retail market. So, to sum it up, be prepared for a bumpy ride. Keep a longterm perspective, and don't make rash decisions based on shortterm market swings. And remember, what do you call a financial planner's secret diary? His 'private equity.' That's all for today's Spy Trader! Stay informed, stay diversified, and I'll catch you in the next one.