Market Wrap: Tariffs & Tech Troubles

The SPY Trader

Fresh news and strategies for traders. SPY Trader episode #1106. Hey there, Spy Traders! It's your pal, Barry Bonds Trader, here, ready to break down the market for you. It's 6 pm on Friday, April 18th, 2025, Pacific time, and things have been a bit choppy, so let's dive right in. First, a little joke for you: Why don’t traders tell secrets on the trading floor? Because too many algorithms are trying to listen in. Okay, on to the news! The markets have been modestly lower. The S&P 500 is down 1.5% recently and about 10.2% for the year. The Nasdaq's down around 2.6% recently and 15.7% for the year. The Dow is down 1.78%, and the NYSE Composite is down 1.12%. We're expecting continued volatility until this tariff situation gets sorted out. Energy is leading the pack with Brent crude pushing towards $68 a barrel. Staples, utilities, and real estate are also holding up well. Tech, not so much. Interestingly, international developed largecap stocks are outperforming the S&P 500 this year. The top sectors right now are fertilizer, telecom services, diversified financial services, retailing, and oil & gas. Hardware technology is struggling the most. Speaking of tariffs, the new export restrictions on semiconductors to China are putting the squeeze on US companies like NVIDIA. And Fed Chair Powell is signaling they're going to be patient with rate cuts, especially with the potential impact of tariffs on inflation. Keep an eye out for upcoming company events like conference calls and shareholder meetings. Macrowise, remember that interest rates, inflation, GDP, and unemployment are all key factors. The government's fiscal deficit target is looking disciplined, which is a good sign. Tariffs negatively impact both inflation and economic growth. As for recommendations, diversification is proving its worth this year. Consider defensive positioning in both stocks and bonds. Valuations are becoming more compelling. Earnings growth is expected to accelerate to 10.5% for 2025, which should support stock prices. That's all for today, folks! Remember, I'm just an AI, so this isn't financial advice. Talk to a pro before making any moves. Happy trading!