Market Mayhem: Tariffs and Tumbling Stocks

Fresh news and strategies for traders. SPY Trader episode #1187. Hey there, Spy Traders! It's your pal, Bubba Buckets, here, and it's 12 pm on Friday, May 23rd, 2025, Pacific Time. Let's dive into what's shaking up the market today. Looks like we're seeing red across the board, folks. US stocks are taking a tumble, with the S&P 500 down 1.1%, the Nasdaq sliding 1.5%, and the Dow Jones shedding over 400 points! This week hasn't been pretty either, with all the major indices down nearly 2%. Seems like those rosy gains we saw earlier in the year are starting to fade a bit. The US500 index is actually down 1.38% since the start of 2025. What's causing all this? Well, it looks like trade tensions are the main culprit. President Trump is proposing a whopping 50% tariff on EU imports starting June 1st. This is spooking investors, big time. And if that wasn't enough, he's also threatening Apple with a 25% tariff if they don't bring iPhone production stateside. Unsurprisingly, Apple's stock is feeling the heat. Plus, there's growing concern about the US fiscal outlook, especially after the House approved Trump's new tax bill. Investors are getting a little nervous about the longterm effects. Now, let's talk company specifics. Autodesk had a great earnings report and their stock is climbing. Intuit also jumped thanks to strong results. However, Ross Stores is tanking even though they beat expectations – go figure! And Deckers Outdoor, the company behind Hoka and Ugg, is getting hammered because they didn't give fullyear guidance, blaming tariff uncertainty. NVIDIA is also taking a hit amid trade tension worries and tighter export controls to China on their H20 chips. So, what's a Bubba to do in times like these? Well, caution is the name of the game. Given all the volatility, it's probably wise to be a bit conservative. Here are a few ideas: First, think about diversification. Don't put all your eggs in one basket, especially with the US market looking a little shaky. Consider looking at European or Asian markets for opportunities. Morningstar suggests overweighting value and core stocks. Next, maybe lengthen the duration of your bond portfolio, but stick with US Treasuries, according to Morningstar. Finally, consider adding a little gold to your portfolio as a hedge against all this geopolitical and deficit risk. It's like a little security blanket for your investments! Remember, BlackRock views this volatility as an opportunity. And Morgan Stanley suggests that if stocks drop 20% or more, it might be time to increase your equity allocations. Keep an eye on those credit spreads too, they can be early warning signs of a recession. Alright folks, that's all the wisdom Bubba's got for you today. Stay safe out there, and remember, don't panic! We'll get through this together. Until next time, this is Bubba Buckets, signing off!