Market Buzz: Rates, Trade, and Buffett’s Exit

Fresh news and strategies for traders. SPY Trader episode #1144. Hey everyone, it's your pal Finny McFinance here, and welcome to Spy Trader! It's 6 am on Tuesday, May 6th, 2025, Pacific time, and let's dive into what's moving the markets today. So, what's the buzz? Well, after a fantastic run, Wall Street hit a bit of a snag, breaking a nineday winning streak. The US500 is down 4.56% since the start of the year, and futures are looking a little soft this morning. First quarter data showed some solid momentum, but now everyone's scratching their heads about the consumer and what's going on with trade. Why did the stock trader bring a ladder to work? Because they heard the market was going up a few levels, but then again, sometimes it just takes you down a notch! Sectorwise, it's a mixed bag out there. Legal Cannabis, Apparel, Footwear & Accessories, and Airline industries are strutting their stuff, while Hardware, Hotels & Resorts, and Commercial industries are feeling the squeeze. Now, let's talk news. All eyes are on the Federal Reserve's meeting. No one expects them to budge on rates, so everyone is hanging on every word from Jerome Powell. Trade is still a big question mark, especially with President Trump pushing for those tariff hikes, including a potential 100% levy on foreign films! But, there's also chatter about potential trade deals being finalized soon. Companywise, Warren Buffett announced he's planning to retire at the end of the year, which is huge news. Palantir Technologies took a 9% hit after hours, even though they beat revenue expectations. Ford and Palantir have earnings coming up. And Polestar is recalling about 27,800 of its Polestar 2 electric vehicles in the U.S. On the bigger picture, the economy slowed down in the first quarter, with GDP decreasing at an annual rate of 0.3%. Forecasts are looking at about 1.1% growth for 2025 and 2026. Inflation is still a concern, especially if these tariffs kick in. Consumer sentiment isn't great, and while the unemployment rate is at 4.2%, there are concerns it could rise. Oh, and that federal budget deficit? It's expected to climb a bit, from 6.2% to 6.8% of GDP. Looking ahead, we've got a week packed with economic data, earnings reports, and that FOMC decision. So, what's Finny's take? Buckle up and be careful out there! With all the ups and downs, trade drama, and mixed signals, I'm recommending a cautious approach. Diversify your portfolio, stick to companies with solid fundamentals, and keep a close eye on trade developments and the Fed. If you're feeling nervous, maybe shift some investments into defensive sectors like healthcare and consumer staples. And as always, stay informed! That's all for today, folks! Stay safe, trade smart, and I'll catch you on the next Spy Trader!