Trade Truce Tango: Market Moves

Fresh news and strategies for traders. SPY Trader episode #1158. Alright, alright, alright! What is up, Spy Traders? It's your boy, Chip "Dip" Dividend, coming at you live from my bunker...err, I mean, my stateoftheart financial studio. It's 12 pm on Monday, May 12th, 2025, Pacific time, and the markets are buzzing like a caffeinated honeybee. Let's dive into the juicy financial fruit, shall we? First up, the big picture: US stocks have been trying to bounce back, but the US500 is still down a bit since the start of the year, roughly about 0.75%. We hit a record high back in February, but, you know, what goes up must come down, or at least wobble a little. But fear not, because today, the US30, that's the Dow Jones, closed up a whopping 2.77%! Now, for the headliner: Uncle Sam and China decided to bury the hatchet... for 90 days, at least. They're putting most tariff hikes on hold. The US is dropping its tariffs on Chinese goodies from a crazy 145% to a slightly less crazy 30%, and China is doing the same, lowering theirs from 125% to 10%. This trade truce sent futures soaring. The S&P 500 futures jumped 3.2%, Dow futures went bananas, up over 1,000 points, and Nasdaq futures leaped 4%. Investor confidence is back in the building! So, who's winning and losing in this financial fiesta? Consumer Discretionary and Tech are strutting their stuff, while Consumer Staples and Utilities are kinda just hanging out in the corner. Ecommerce giants like Alibaba and Shopify are doing the chacha, and Carnival cruise lines are finally setting sail to gainsville. Apple, Nvidia, Amazon, Meta, Alphabet, and Tesla are all flexing those tech muscles. Chip stocks? Oh, they're throwing a party. On the flip side, Newmont Mining, the gold folks, are feeling a bit less shiny because gold prices took a tumble. What's the Fed doing in all this? They're playing it cool, holding interest rates steady but waving a yellow flag about possible inflation and unemployment down the road. Apparently, those tariffs had them a little worried, which is why this trade news is so important. Also, NRG Energy is doing the Macarena after killer earnings and a $12 billion deal to buy some natural gas assets. And word on the street is Apple might hike iPhone prices this fall. Alright, let's break it down. This market is like a seesaw right now. The USChina trade deal is a major shot in the arm, but we've still got to keep an eye on those pesky inflation and unemployment concerns. That's the Fed's party, not ours. So, what's a Spy Trader to do? My advice? Proceed with caution, folks. Don't go betting the farm just yet. Consider shaking up your portfolio a bit, maybe dip your toes into sectors that'll thrive in this wacky environment. Keep your peepers peeled on those big economic numbers like CPI, employment, and GDP. Diversify like you're trying to win a 'most varied portfolio' award. And think longterm. Focus on solid companies that have the potential to grow. Most importantly, stay informed. That's why you're here, right? Remember, I'm just a financial funnyman, not a fortune teller. These are just my thoughts, not gospel. Do your own homework before making any moves. Until next time, this is Chip "Dip" Dividend, reminding you to stay cool, stay informed, and don't let the market drive you nuts! Peace out!