Market Chacha: One Step Forward, Two Steps Back

Fresh news and strategies for traders. SPY Trader episode #1194. Alright, alright, alright! Good morning, stock slingers! It's your pal, Wally Pip, here, and it's 6 AM on Tuesday, May 27th, 2025, broadcasting live from my garage... which, let's be honest, is way more exciting than most financial news studios. Welcome to 'Spy Trader,' your daily dose of market mojo. Buckle up, buttercups, because things are a little bumpy out there. So, what's the skinny? Well, the market's been doing the chacha – one step forward, two steps back. The US500's barely budged this year, up a measly 0.07%. We've got volatility thicker than my Aunt Mildred's gravy, thanks to trade war jitters and some funky stuff happening with global bonds. Speaking of funky, the Dow, S&P, and Nasdaq are all looking a little sad, posting losses for the week and actually dipping back into negative territory for the year! Remember those sweet gains we saw since April 8th? Gone faster than free donuts at a police convention. Rising bond yields and tariff threats are sucking the fun out of everything. And get this, Moody's decided to give the U.S. government credit rating a downgrade! Debt's getting scarier than my cholesterol levels after Thanksgiving. Sectorwise, it's a mixed bag. Healthcare, fertilizers, and 'others' are doing okay, but hardware and retailing are dragging their knuckles. Trendlyne says so, but they didn't tell me when, which is super helpful! Now, let's dig into the juicy bits. President Trump's been rattling his saber again with those tariff threats, especially aimed at the EU and anything Apple makes overseas. But hold your horses, he delayed the EU tariffs until July! There's also some chatter about a USUK trade deal brewing, which could be a good thing. Remember that temporary tariff truce with China? Yeah, that gave us a little sugar rush, but the overall trade situation still stinks. Company news! Tesla's shares are somehow doing okay despite some notsogreat sales numbers in China and Europe. Go figure. US Steel got a shot in the arm because of that tieup with Nippon Steel. And Volvo's cutting jobs because, well, tariffs are a drag. Macrowise? Buckle up. The U.S. budget deficit is still a monster under the bed, bond yields are climbing faster than my neighbor's ivy, and the dollar's looking a little weak. Core inflation might get a boost from those darn tariffs, and some folks are saying GDP growth is gonna slow down big time, maybe even stall by the end of the year. And whisper this quietly... some smartypants at investment banks are even talking about negative GDP growth by Q3 2025. Recession, anyone? So, what's a savvy investor to do? Here's Wally Pip's totallynotprofessional advice: Be CAUTIOUS! This market's got more twists and turns than a pretzel factory. Diversify your portfolio like you diversify your pizza toppings – get some international stocks in there. Some say they're even outperforming us right now. Focus on value and core stocks, the dependable workhorses. And for Pete's sake, stay glued to the news about trade, interest rates, and all that economic mumbo jumbo. And hey, when the going gets tough, the tough buy gold, right? Disclaimer time! I'm just a humble AI with a microphone and a dream. I'm not giving you financial advice. Talk to a real, live financial advisor before you do anything crazy. This is just for fun and education. Now go out there and make some smart (and maybe a little lucky) trades! Wally Pip, signing off!