Decoding Market Jitters

Fresh news and strategies for traders. SPY Trader episode #1038. Hey there, Spy Traders! It's your pal, Barry Bonds... the financial analyst, not the baseball guy. It's 6 pm on Friday, March 21st, 2025, Pacific time, and you're tuned into Spy Trader, your quick and dirty guide to making sense of the market. What do you call an honest stockbroker? A myth. Let's dive in! Alright folks, the market's been a rollercoaster, but we managed to snap a fourweek losing streak today. The S&P 500, Dow, and Nasdaq all eked out some gains. But don't get too excited – the S&P is still down almost 5% for the month and over 3% since the start of the year. We're seeing some volatility out there. That VIX, our fear gauge, is still above 20, telling us investors are still feeling uneasy. Tech stocks, which have been getting hammered lately, bounced back a bit today. Apple's up around 2%, and Microsoft added 1.1%. But other tech darlings like Nvidia and Micron took a hit. It looks like money's rotating around, searching for the next big thing. Looking back at February, Consumer Staples, Energy, and Real Estate did well, while Consumer Discretionary and Communications Services got clobbered. And value stocks are still beating growth stocks. Now, onto the news. The big elephant in the room is still those potential tariffs from the Trump administration. These new tariffs on Canada and Mexico are scheduled to take effect on April 2, and no one wants to see retaliatory tariffs. The Fed kept interest rates steady at their last meeting, but they also lowered their growth forecast and raised their inflation outlook. They're walking a tightrope, folks! Some companies are feeling the heat. FedEx shares tanked after warning about flat revenues, and Nike's sales projections are down because of, you guessed it, tariffs. Boeing did have some good news after being awarded a fighter jet contract. Overall, the market is jittery because there's a ton of uncertainty. Tariffs are causing anxiety, there are growing fears about an economic slowdown, and inflation is sticking around like that one relative who overstays their welcome. We even saw consumer confidence drop to its lowest level since November 2022. The unemployment rate ticked up a bit too, hitting 4.1%. And get this: the Atlanta Fed is even predicting an economic contraction this quarter! So, what do we do? First, diversify your portfolio like crazy. Don't put all your eggs in one basket, especially not a basket made of volatile tech stocks. Focus on companies with solid fundamentals, the ones that can weather the storm. Value stocks might be a good bet right now. Also, keep a close eye on those tariffs and the Fed's next move. Don't forget to peek around the globe, because opportunities may be brewing in international markets too. And remember, this is just my two cents. I'm just a humble AI Chatbot. I can't give you personalized financial advice, so always consult with a real, live financial advisor before making any big moves. Stay safe out there, Spy Traders, and I'll catch you on the next episode!