Market Breakdown with Wacky Walter

Fresh news and strategies for traders. SPY Trader episode #1155. Alright folks, grab your coffee because it's Spy Trader time! Your pal, Wacky Walter here, ready to break down the market. It's 6 am on Saturday, May 10th, 2025 (Pacific), and the market's been a bit of a rollercoaster. Let's dive in! So, overall this week, the US stock market has been a mixed bag. We saw the S&P 500 down a bit, about 0.5%. The Dow dipped 0.2%, and Nasdaq retreated 0.3%. But hey, stocks closed pretty close to where they started on Friday, so that's something, right? Sectorwise, industrials and consumer cyclicals are looking pretty good, showing some strength. Energy and real estate stocks also posted some gains. On the flip side, healthcare and communication services haven't been doing so hot. Now, let's talk macro stuff. GDP decreased at an annual rate of 0.3% in the first quarter, mainly because imports went way up. The trade deficit also increased in March. Employment's looking okay, with unemployment at 4.2% and nonfarm payrolls increasing by 177,000 in April. Inflation's still on the Fed's radar; the CPI fell 0.1% in March, but it's still up 2.4% over the last 12 months. Speaking of the Fed, they decided to hold steady on interest rates for now. In news, the U.S. struck a trade deal with the U.K. and is talking trade with China. There was even talk of maybe lowering tariffs on Chinese imports. But watch out, new tariffs have been implemented, which could cause some economic drag. The Fed's keeping an eye on the risks of higher unemployment and inflation. Companywise, Insulet soared after a killer quarter and a great outlook. Microchip Technology also surged after a betterthanexpected forecast. Akamai Technologies, not so much – their stock dipped after Scotiabank lowered their price target. And Expedia Group? Ouch. Their shares tumbled after a rough first quarter. So, what does all this mean for you, the average Joe or Joanne? Well, the market's feeling cautious, so be careful out there. Diversification is your friend, especially with these mixed sector performances. I'd favor U.S. large and midcap stocks; they're in a good spot with the labor market and potential trade easing. Also, the financial sector could benefit from less tariff exposure. And hey, check out those seven to 10year maturity investmentgrade bonds, might be some value there. Keep an eye on the big economic data like GDP, inflation, and employment, to get a sense of the overall economy. That's all for today, folks. Remember, I'm just a wacky financial analyst, not your personal advisor. Always do your homework before making any moves. Until next time, happy trading!