Market Rollercoaster: Tariffs & Tech Turmoil

Fresh news and strategies for traders. SPY Trader episode #1051. Alright folks, it's your pal Dip Master Dave here, and welcome to 'Spy Trader'! It's 12 pm on Thursday, March 27th, 2025, Pacific time, and we're diving headfirst into the choppy waters of today's market. What's a stockbroker's favorite dance move? The bullish swing. First up, the big picture: US stocks have been all over the place today, a real rollercoaster thanks to those pesky tariff concerns and some mixed economic signals. The S&P 500 is currently up around 0.3% in midday trading, trying to claw its way back from earlier losses. However, other reports show the SPY ended down over 1%. The Dow is hovering slightly down, less than a hair's breadth really, and the Nasdaq's up a similar amount to the S&P. Let's drill down. Consumer discretionary is looking strong, like people are still out there spending. On the flip side, tech and energy are getting hammered. That FANG index is down nearly 3% yesterday, ouch! We're also seeing weakness in media, hotels, and financials. So, what's driving this crazy train? Tariffs, tariffs, tariffs! President Trump slapped a 25% tariff on imported cars, starting April 2nd. General Motors (GM) is feeling the pain, their stock's down. But Tesla (TSLA) is catching a tailwind, likely because they're producing more cars stateside. Rivian is also seeing a bit of a boost. On the economic front, Q4 GDP got a tiny bump to 2.4%, but overall growth is expected to slow down this year and next. Inflation is still above the Fed's target, and consumer spending seems to be weakening. Speaking of the Fed, they're playing it cool, likely holding steady on interest rates for now. Oh, and quick note on Microsoft. TD Cowen reported Microsoft could be pulling back from data centers, hitting the AI complex. Alright, let's talk about what to do with all this info, and remember, this isn't financial advice, just your buddy Dave's take. Diversify, diversify, diversify! With this much uncertainty, don't put all your eggs in one basket. Keep a close eye on those tariff impacts, look for companies that might benefit from the changes, but be wary of those that will get burned. Focus on value stocks. With potential market volatility, companies with solid fundamentals are your friends. Also, bonds might be a good play given potential rate cuts and slower growth. And don't forget about international stocks, especially in regions where growth might be picking up. That's all for today's 'Spy Trader'! Stay frosty, and remember, do your own research before making any moves. Dip Master Dave, out!