Market Jitters: Trade Wars & Bubba’s Playbook

The SPY Trader

Fresh news and strategies for traders. SPY Trader episode #1192. Hey there, Spy Traders! It's your pal Bubba back with the hottest takes on the market. It's 12 pm on Monday, May 26th, 2025, Pacific time, and while the markets are snoozing for Memorial Day, we're wide awake, digging into what happened last week and what it means for your wallet. Buckle up, buttercups, because this week has been a rollercoaster. The Dow, S&P 500, and Nasdaq all took a tumble, each dropping around 2.5%, wiping out those gains we saw earlier in the year. Ouch! Friday wasn't any prettier with all three closing down around 1%. But hold on to your hats! This morning, futures are popping up after Trump delayed those tariffs on EU goods, pushing the deadline to July 9th. Talk about a mixed bag! Now, let's break it down. It looks like our friend Donald's been tweeting again, this time about tariffs on iPhones and European goodies. That's got everyone jittery. Remember Apple? They took a 3% hit on Friday because of it, dragging down other tech giants like Microsoft, Nvidia, Amazon, Alphabet, and Meta. Seems like the whole sector is feeling the heat. But it wasn't all doom and gloom. US Steel got a 21% bump after Trump gave the thumbs up to that Nippon Steel deal. Score one for Big Steel! Meanwhile, the number crunchers tell us the economy shrank a bit in the first quarter, down 0.3%. And it looks like the Fed might be pumping the brakes on those rate cuts we were all dreaming about. So, what's Bubba thinking? Well, the market's got a serious case of the jitters thanks to all this trade war talk and a slowing economy. Inflation could be creeping up to 3% by year's end, which means the Fed might keep interest rates higher for longer. Not great news for growth stocks. Given all this, here's Bubba's playbook: First, don't put all your eggs in one basket, folks. Diversify, diversify, diversify! Think about loading up on value stocks, those hidden gems that are cheap right now. Energy and real estate got hammered last week so could be a good time to reevaluate. Also, don't just look at the US, there's a whole world of stocks out there! Keep some cash on hand. You know, dry powder. If the market dips, you'll be ready to pounce. And most importantly, don't panic! This is a marathon, not a sprint. Stay informed, stay cool, and remember Bubba's got your back. Until next time, happy trading!