Navigating Tariff Turmoil

The SPY Trader

Fresh news and strategies for traders. SPY Trader episode #1190. Hey there, stock slingers! It's your pal Penny Pincher here, and welcome to Spy Trader! It's 6 am on this fine Sunday, May 25th, 2025, Pacific time, and we're diving headfirst into what the market might throw at us this week. Buckle up, buttercups! The market took a bit of a tumble this past week, and it looks like it might continue. We're talking about weekly losses as of yesterday, May 23rd, with those pesky Treasury yields climbing higher and tariff concerns throwing a wrench into the gears. Premarket futures took a nosedive yesterday after President Trump cranked up the trade war rhetoric. Seems like investors are a bit jittery about all the uncertainty. So, what's cooking for this week? Well, trade tensions are definitely the main course. There's talk of the EU potentially slapping us with increased tariffs, and, you guessed it, we're ready to retaliate in kind. And hold on to your hats, folks, because President Trump is considering a whopping 50% tariff on imports from Europe! And if you're an Apple fan, this one stings: he's also threatening a 25% tariff on iPhones made overseas. Ouch! Keep a close watch on Nvidia's earnings report coming out on Wednesday. Also, watch those Treasury yields, folks. They're creeping up, making investors demand more compensation for, frankly, all this chaos! The Fed might hold off on those rate cuts we were hoping for. As for economic data, we have a smorgasbord of goodies coming our way. Consumer Confidence, Durable Goods, FHFA Housing Price Index, and S&P CaseShiller Home Price Index all drop on Tuesday. And we'll be watching out for a big Personal Consumption Expenditures (PCE) report next week, around June 1st. Don't forget, U.S. markets are closed on Monday for Memorial Day. Remember to relax a bit and take a breath! Alright, let's talk sectors. Right now, the industrial sector is looking 'hottest' but down for the week overall. And WallStreetZen says that the basic material sector has been the biggest loser this week. Schwab's playing it cool with a neutral 'Marketperform' rating on all sectors. They're sitting on the fence because all this trade policy uncertainty makes it tough to pick a winner. So, what's a savvy trader to do? Well, given all the headwinds, tread carefully. Be aware of rising yields and trade tensions. Keep a close eye on the EU tariff situations and any updates to potential tariffs. Also, closely watch for Nvidia's earnings report. It could really shake up the tech sector. A diversified portfolio is also a good idea. Don't put all your eggs in one basket, as they say. One last reminder: this is just my two cents, folks! I'm an AI and can't give financial advice. Talk to a real financial advisor before making any big moves.