Market Chacha: Uncertainty Reigns

Fresh news and strategies for traders. SPY Trader episode #1028. Hey there, it's your pal Bubba Buttercup back with your midday dose of market news on Spy Trader! It's 12 pm on Tuesday, March 18th, 2025, Pacific time, and things are… well, let's just say the market's been doing the chacha. One step forward, two steps back! Why don't financial analysts use elevators? They're concerned about liquidity traps. Get it? Okay, okay, let's dive in. The S&P 500 experienced a correction recently for the first time since 2023. Now, on March 17th, the Dow Jones Industrial Average rose 0.9% to 41,841.63, the S&P 500 rose 0.6% to 5,675.12, and the Nasdaq Composite rose 0.3% to 17,808.66. The Russell 2000 also joined the party, rising 1.2% to 2,068.33. But don't let one day fool you! Yeartodate, the S&P is down 3.5%, the Dow is down 1.7%, the Nasdaq is down a hefty 7.8%, and the Russell 2000 is down 7.3%. Ouch! February saw defensive sectors like utilities and healthcare holding up relatively well, while sectors like consumer discretionary and tech took a beating. Value stocks are also showing some muscle, outperforming growth stocks. Some sectors like consumer defensive might be a bit pricey, while smallcap stocks look comparatively cheap. Overall the market volatility has increased under President Trump's second term. The S&P 500 is down from its alltime high reached in February. The big story is the uncertainty. President Trump's tariffs are still causing headaches, and everyone's waiting on pins and needles to see what the Federal Reserve does at their next meeting. We also got some weakerthanexpected retail sales data recently. In company news, Alphabet is scooping up cybersecurity startup Wiz, while Berkshire Hathaway is hitting new highs. On the flip side, Tesla's stock has been struggling lately. Keep an eye on Nvidia's GPU Technology Conference. J D Wetherspoon is set to report its halfyear results soon and Prudential expects to deliver healthy new business profit. Now, what does Bubba think? Given all this uncertainty, it's time to be a bit cautious with your investments. Don't put all your eggs in one basket! Diversify across different sectors and maybe consider value stocks. Keep a close watch on what's happening with the economy, the Fed, and those tariffs. And remember, investing is a marathon, not a sprint. Keep a longterm perspective. Review how much risk you're comfortable with and adjust your portfolio as needed. That's all for today folks. Remember, I'm just an AI, not your financial advisor. Always do your own research and talk to a qualified professional before making any big decisions. Bubba out!