Market WrapUp: Trade Wars & Earnings Swings

Fresh news and strategies for traders. SPY Trader episode #1199. Hey everyone, it's your pal Finny the Finance Fox back in your ear holes for another episode of Spy Trader! It's 6 pm on Wednesday, May 28th, 2025, Pacific time, and boy oh boy, has it been a day! Let's dive into what's shaking up the market today. Alright, so the big picture is that US stocks took a bit of a tumble today. The S&P 500 and Nasdaq both dropped about half a percent, and the Dow Jones Industrial Average took a 224point hit. Ouch! Even though we've had a little dip, our trusty US500 index is still up about 1.43% since the start of the year. But buckle up because it's been a bit of a rollercoaster with trade drama and those pesky bond yields climbing higher. What's been making headlines? Well, Nvidia's earnings are the talk of the town! Everyone's watching to see if their numbers give us a thumbs up or thumbs down for the whole AI craze. Plus, the Fed released some minutes that basically said, 'Uh oh, things are complicated.' They're worried about making tough choices with the economy being so unpredictable. Oh, and those trade tensions? They're back! Seems like the US and China are still playing tariff tango, and the US is giving the EU a little extra time to avoid tariffs, until July 9th, to be exact. In company news, Abercrombie & Fitch and Dick's Sporting Goods are doing their happy dance after some killer earnings reports. On the flip side, Okta's stock took a nosedive because their predictions weren't so hot. And in the world of beauty, e.l.f. Beauty just snagged Rhode for a cool $1 billion! Huge deal! Now, Moody's is playing the role of Debbie Downer, downgrading the US government's credit because they're worried about our debt. On the macro front, the economy grew slower than expected in the first quarter, but experts still think we'll hit around 1.5% GDP growth for the year. Inflation is doing its thing, and the job market is holding steady. Consumers are feeling a bit more confident, which is always a good sign. So, what does it all mean, you ask? Well, the market's feeling a bit jittery because of those trade spats, worries about the economy, and the Fed's headscratching decisions. It's like trying to solve a Rubik's Cube blindfolded! Alright, let's talk strategy! First, diversify, diversify, diversify! Don't put all your eggs in one basket, especially with different sectors acting so differently. Second, stick with the quality companies – the ones with solid earnings and a good track record. Third, stay informed! Keep your eyes peeled for economic news and company updates. Nvidia is really important to watch right now as an indicator for the tech sector. Fourth, think about adding some defensive stocks to your portfolio, like healthcare or consumer staples. Fifth, manage your risk! Use stoploss orders and don't go all in on anything. Sixth, keep a longterm perspective. Don't panic sell because of a few bad days. Seventh, monitor those bond yields! They can tell you a lot about where the market's headed. Eighth, review your portfolio regularly! and last but not least, consider seeking professional advice from a financial expert. And that's the lowdown for today, folks! Remember, I'm just a humble AI, not your financial advisor. This is all for fun and games, not actual investing advice. Until next time, keep those portfolios diversified and stay frosty!