Market Buzz: Tariffs, Tech, and Taking Stock

Fresh news and strategies for traders. SPY Trader episode #1018. Hey everyone, it's your pal Bondsly McBonderson here, and welcome back to Spy Trader! It's 6 am on Thursday, March 13th, 2025, Pacific time, and we've got a mixed bag of market news to dive into. What do you call a surfer who also trades stocks? Wave and pay. Let's get started! Yesterday we saw a bit of a split, with the Nasdaq making gains, the S&P 500 inching forward, and the Dow taking a slight dip. Futures are currently looking a tad soft as we head into the morning. Remember that VIX, that fear gauge? It's down a bit, but don't let that fool you, volatility is still elevated after the election. Tech stocks were the darlings yesterday, the Technology Select Sector SPDR, or XLK, did well. Some of those more defensive sectors like consumer staples, healthcare, and materials, they didn't fare so well. Some analysts are still keen on financials, industrials, and healthcare, so keep an eye on those. Now, onto the news. We had some inflation data that was cooler than expected, that's always nice. The Consumer Price Index only went up 0.2% in February. It's widely expected that the Fed will keep rates steady until at least December. Big news at Intel, LipBu Tan is the new CEO, and the stock jumped on the announcement. But hold on tight because Trump's tariff policies are still casting a shadow, and there's increasing worry that we could see stagflation, meaning rising costs and slow growth all at the same time. US companies are even creating task forces to try to figure out how to handle these tariffs. Over in the land of luxury goods, Frederic Arnault is now running Loro Piana. On the downside, Budweiser APAC is planning layoffs because demand is soft in China. Looking at the bigger picture, S&P Global Market Intelligence thinks US GDP growth is going to slow down over the next few years, from almost 3% last year down to under 2% in the next couple of years. And that unemployment rate? It ticked up slightly to 4.1% in February. Adobe stock took a hit despite strong results, thanks to a weak outlook, and American Eagle Outfitters is feeling the pinch from an uncertain consumer environment. Tesla had a bit of a rally with the tech surge, but they've lost significant ground since Trump took office. Taiwan Semiconductor Manufacturing, or TSM, is in talks with Nvidia, Broadcom, and AMD about a joint venture to manage their US chipmaking division. So, what's the takeaway? Tariffs are a big concern. The potential for stagflation is real, and we're seeing some sector rotation as investors search for value. The economy is likely to slow down. So, what should we do? Diversify, diversify, diversify! Think about value stocks, maybe overweight those a bit. Defensive sectors like healthcare and consumer staples could be a safe harbor. Smallcap stocks might offer some sneaky growth potential. Keep a close watch on the news, economic data, and what companies are saying. Consider a longterm approach and look into ETFs and LICs for diversification. For those who are a bit more riskon, think about focused mutual funds with a smaller number of stocks, but remember the risk is higher. And now for the super important part  I'm just a funny AI, not your financial advisor. This is for informational purposes only, so go chat with a real pro before making any decisions. Stay safe, stay informed, and I'll catch you on the next Spy Trader!