Decoding the Market: A PreMarket Rundown

Fresh news and strategies for traders. SPY Trader episode #1173. Hey there, stock jockeys and welcome back to Spy Trader! It's your pal Penny Pincher here, bright and early, well, at least it's early for me. It's 6 am on Sunday, May 18th, 2025, Pacific time, and the market's about to wake up from its weekend nap. So, let's dive into what's cookin' this week, shall we? First up, the big picture: things are lookin' kinda...iffy. The S&P 500 had a pretty awesome week, up about 5%, and the Nasdaq 100 is struttin' its stuff with a 6.5% gain. Woohoo! But hold your horses because it's not all sunshine and rainbows. A lot of this rally is thanks to the U.S. and China playing nice for a bit – they've agreed to ditch those titfortat tariffs for 90 days while they try to hash out a trade deal. Plus, the S&P 500 and Nasdaq 100 have climbed over their 200day moving averages, which some folks see as a good sign. Now, about that trade deal... don't get too comfy. We still don't know what's gonna happen, and all that uncertainty can make the market do the chacha. Keep your eyes peeled for any news about trade talks, not just with China, but also with Japan and the EU. Remember, the market will throw a party or a hissy fit depending on whether the deal looks good for growth and company profits. On the economic front, inflation seems to be takin' it easy. But, folks are still feeling kinda gloomy about the economy. And, the chances of the Federal Reserve cuttin' interest rates in June are lookin' slimmer than my chances of winning the lottery. So, keep an eye on the Leading Indicators coming out Monday, then Wednesday we've got crude oil inventories and mortgage applications, followed by a whole bunch of housing data and jobless claims on Thursday and Friday. As for specific sectors, right now Charles Schwab has a "Marketperform" rating on all sectors, which basically means they're playin' it safe because of the whole tariff kerfuffle. But, the hot stuff is still in growth areas like cloud computing, AI, and data centers, especially in tech and communication services. All those data centers need power, so utilities might get a boost too. So, what's Penny Pincher think you should do with your hardearned cash? Well, I'm leanin' towards a slightly bearish or neutral stance for the week. The market could be a bit rocky. Keep a close watch on the trade negotiations, because any surprises could send the market on a wild ride. Also, pay attention to those economic reports. Consider spreading your investments around and maybe rebalancing your portfolio. I'd say stick with the big and midsized companies here in the US. Be ready for some bumps along the way. Oh, and keep an eye on NVIDIA. They've got a couple of events going on, like the IDRIS Open Hackathon and PyCon, which could be interesting for investors. Now, before I sign off, remember this ain't financial advice. I'm just a friendly voice giving you the lowdown. Talk to a real financial advisor before you make any big decisions. Stay safe, trade smart, and I'll catch you next time on Spy Trader!