Wall Street WakeUp

Fresh news and strategies for traders. SPY Trader episode #1016. Alright, folks, buckle up! It's 6 am on Wednesday, March 12th, 2025, and you're tuned into Spy Trader with your pal, Wally Pip! Let's dive into what's shaking up Wall Street today. What's a hedge fund manager's favorite activity? Hedging around the bushes. Yesterday was a bit of a downer, with all the major indexes taking a hit. The Dow Jones dropped 1.14%, the S&P 500 slid 0.76%, and even the Nasdaq dipped 0.18%. All eleven sectors of the S&P 500 closed in the red, with Industrials, Communication Services, and Consumer Staples taking the biggest beating, down about 1.5% each. However, futures are pointing higher this morning, so maybe we'll see a turnaround. Trade tensions are still a major buzzkill. President Trump's tariff announcements on steel and aluminum from Canada and those tariffs on imports from China and Mexico have investors feeling jittery. Now, let's talk company news. Intel is potentially teaming up with Taiwan Semiconductor Manufacturing Company, TSM, in a foundry joint venture, which is why their stock is jumping. Adobe is reporting Q1 results after the bell today, and folks are expecting good news from their AI products. On the flip side, Kaynes Technology shares took a dive after the MD got a showcause notice from SEBI. And Apple? Their stock's feeling the heat from those tariff increases on Canadian imports. Looking at the bigger picture, the US economy's GDP growth is expected to slow down over the next few years. S&P Global Market Intelligence is predicting 1.9% growth for 2025 and 2026, and then 1.6% in 2027. Inflation's still a worry, with core PCE inflation expected to rise. The Fed's probably going to hold off on any interest rate changes until December. Consumer sentiment's also taking a hit, likely due to inflation anxieties, and there are growing fears about a potential recession in 2025, especially because of these trade policies. So, what's a savvy investor to do? First off, diversify, diversify, diversify! Spread your investments across different asset classes and sectors. Given the market's volatility, consider tilting towards value stocks. Keep a close eye on trade policy developments and how they might affect specific industries and companies. Stay informed about economic data and Fed decisions. With all the uncertainty right now, it might be wise to just take a "waitandsee" approach. That's all for today's Spy Trader. Happy trading, and I'll catch you in a few!