Market Mayhem: Digger’s Dive

Fresh news and strategies for traders. SPY Trader episode #1010. Alright, folks, buckle up, it's your pal Digger Dividend here, ready to dig into the markets. It's 6AM on the West Coast, March 10th, 2025, and things are looking a bit bumpy out there. Today, we will dive deep into what is moving the market, and I will also present some actionable recommendations. First, let's get to the summary of key news items. The US stock market is experiencing a pretty broad selloff. The S&P 500 is down over 2%, the Dow is down almost 1%, and the techheavy Nasdaq is getting hammered, down close to 4%. It looks like the S&P 500 had its worst week since September recently, which is making investors understandably nervous. The market has returned to preelection levels after three consecutive weeks of losses. So, what's behind all this? Well, a few things. First, investor anxiety is surging over economic uncertainty linked to President Trump's tariff policies. His comments over the weekend, where he didn't rule out a recession, aren't helping either. Wall Street is worried about how much economic pain the President is willing to accept to achieve his objectives. Then there's inflation. Everyone's watching the CPI report due on Wednesday, trying to figure out if inflation is going to stay stubbornly high. US consumer inflation expectations for the year ahead rose in February. The Fed is also a major factor. No one expects a rate cut at the next meeting on March 19th, and the market anticipates just two or three rate cuts this year. Fed Chair Powell has indicated the central bank can be patient in adjusting interest rates, citing uncertainty around President Trump's economic policies. Now, let's talk sectors. Tech and AI stocks are getting hit hard. Nvidia is down significantly this year, and Tesla is getting pummeled, down over 40% in 2025. Value stocks are outperforming growth stocks, which is a bit of a reversal from what we've seen recently. As for specific companies, Redfin shares are soaring on news of being acquired by Rocket Companies, while Rocket Companies is sinking after announcing the acquisition. Novo Nordisk is falling after weightloss drug trial results. Oracle shares are declining ahead of their earnings report today after the market closes. So, what's a Digger Dividend to do in this mess? Well, first, focus on the fundamentals of the companies you invest in. This is not the time to gamble. Maintain a longterm perspective. Don't panic sell! Consider overweighting value stocks, as they may still be undervalued compared to growth stocks. Diversify your portfolio across different sectors to mitigate risk. Closely monitor upcoming economic data releases, especially inflation data, and Fed announcements. Be cautious with growth stocks, particularly those trading at high premiums. Explore opportunities in sectors that are currently undervalued. And most importantly, manage your risk. Given the uncertainty surrounding trade policies and economic growth, consider reducing your overall exposure to the market. And now, for a little chuckle to lighten the mood: Why did the options trader quit his job? He couldn't exercise his options anymore. Remember, folks, this is just my take on things. Do your own research and talk to a financial advisor before making any decisions. Stay safe out there, and I'll catch you on the next Spy Trader!