Market Pulse: Sector Rotation & Fed Watch

The SPY Trader

Fresh news and strategies for traders. SPY Trader episode #1234. Hey there, Spy Traders! It's your pal, Penny Stockington, here, and it's 6 pm on Thursday, June 12th, 2025, Pacific Time. Let's dive into what's shaking up the market right now. The US market had a mixed day, closing slightly up. The S&P 500 is up 0.4% and the Nasdaq's added 0.2%. The Dow closed 101 points higher. Seems like we're holding onto those gains after yesterday's good news on CPI and the Treasury auction, plus today's PPI report. But, the Russell 2000 is lagging a bit. In sectors, Tech and Utilities are the MVPs today, especially anything nuclear. Health is also doing better than average. On the flip side, Communication Services, Consumer Discretionary, and Industrials are dragging their feet. Now, let's peek at the bigger picture. GDP slowed down more than expected in Q1, only dropping 0.2%. Consumer spending is still up, though, especially on services. Inflationwise, things are looking a bit calmer. The Producer Price Index only rose 0.1% in May. The Fed's probably going to keep interest rates steady for a bit, maybe cut them later in the year, perhaps as early as September. As for individual companies, Oracle's stock is soaring after a great quarter, thanks to AI cloud stuff. Larry Ellison's probably doing a happy dance! Boeing, however, is taking a hit after that Air India Dreamliner crash. Broadcom announced a dividend of US$0.59, and Microsoft's paying one out in September too. Palantir, watch out, one of their directors is planning to sell some stock. So, what does all this mean? Well, it looks like we're seeing some sector rotation, which could mean investors are changing their minds about where the economy is headed. Even though inflation seems to be cooling off, those potential tariffs are still a worry. And that slower GDP growth? Something to keep an eye on. The Fed's next moves are going to be super important for keeping the economy on track. Okay, Penny's two cents? Diversify, folks! Don't put all your eggs in one basket, especially with things being so uncertain. Look at companies with strong earnings and solid financials. Keep a close eye on those inflation numbers and what the Fed's doing. And maybe, just maybe, start looking at value stocks. Growth stocks have had their time in the sun, after all. And as always, stay informed! That's all for now, Spy Traders. Remember, I'm just a funny financial friend, not a financial advisor. Always do your own homework before making any moves. Happy trading!