Market Recovery: Green Shoots & Tariff Turbulence

Fresh news and strategies for traders. SPY Trader episode #1046. Hey there, Spy Traders! It's your pal, Penny Pincher, here, broadcasting live, well, not really live, but you know what I mean. It's 6 pm on Tuesday, March 25th, 2025, Pacific time, and we're diving headfirst into the market madness! So, what's the buzz today? Well, after a bit of a rough patch, the US stock market is showing some green shoots, folks. We're seeing signs of recovery after that monthlong selloff, with the S&P 500 and Nasdaq both up a little, around 0.2% and 0.5% respectively. Even the Dow is inching its way up. But remember, even with these recent gains, the US500 index is still down 2.01% since the start of the year. Now, let's talk sectors. Communication and consumer discretionary stocks are leading the charge today. Looking ahead, Charles Schwab is saying Financials and Communication Services could be the outperformers over the next 612 months. Consumer Discretionary, on the other hand, is lagging behind, partly because of Tesla's struggles in Europe. Speaking of Tesla, it did rally late Tuesday, gaining ground for the 5th session in a row, so maybe there is some hope. In other news, those tariff talks are still all over the place. Remember how the market got a little boost earlier in the week because of talk that President Trump might ease up on some tariffs? Well, hold your horses! Now there's chatter about new tariffs on pharmaceuticals and autos. This is definitely creating some market uncertainty. Consumer confidence also took a hit, hitting a fouryear low. And the Fed? They're holding steady on interest rates, sticking with their prediction of two cuts this year. But they did bump up their inflation forecast a tad, expecting 2.7% for the year. Companywise, besides Tesla, we saw UPS shares take a 5% dive after Bank of America lowered their earnings forecast. KB Home also dropped 5% after a notsogreat earnings report. On the flip side, International Paper is looking pretty good after their investor day. Oh, and Trump Media is partnering with Crypto.com on some