Market Maze: Trade Winds & Rate Hikes

Fresh news and strategies for traders. SPY Trader episode #1168. Hey everybody, it's your pal, Penny Pincher, here with another episode of Spy Trader! It's 6 pm on Thursday, May 15th, 2025, Pacific Time, and the markets have been a bit of a rollercoaster lately. Let's dive right in. Okay, so the big picture is that stocks have pulled back a little from their recent highs. We saw a mixed bag yesterday, with the S&P 500 and the Dow inching up, but the Nasdaq took a little dip, especially with some tech stocks cooling off a bit. One thing that's still hanging over everything is the USChina trade situation. Remember how everyone was excited when the US and China chilled out on tariffs? Well, that buzz is kind of fading. Walmart even warned that prices might still go up despite the deal, so that's not great news for consumers. Sectorwise, it was a mixed bag yesterday. Utilities, consumer staples, and real estate did well, but tech took a breather after a pretty hot run. We've seen some big gains in tech lately, especially from Nvidia and Tesla, which have been driving the Nasdaq higher. But it looks like some folks are taking profits off the table. Now, let's talk about the economy. We got some new numbers, and it looks like wholesale prices actually fell a bit in April. That's unexpected. Overall, the economy is still expected to grow, but maybe not as fast as we thought. Inflation is still a concern, even though the annual rate dipped a bit in April. Rising tariffs could make inflation worse later in the year. The Federal Reserve is also a big focus. Everyone's hanging on Chair Powell's every word. It sounds like the Fed is going to be pretty focused on keeping inflation in check and might not be so quick to cut interest rates if the job market stays strong. Some folks are still predicting a couple of rate cuts later this year, but we'll have to wait and see. In company news, Dick's Sporting Goods is buying Foot Locker – that's a pretty big deal! Also, Cisco reported earnings yesterday after the bell. On the notsogreat side, UnitedHealth Group took a dive after some news about a federal investigation. General Electric got a boost because Qatar is using their engines in some Boeing planes. AMD announced a big stock buyback, which is usually good news for shareholders, and Super Micro Computer is making a splash with a huge deal in Saudi Arabia. So, what does this all mean for you? Well, with all the uncertainty around trade, inflation, and the economy, it's probably a good idea to be a little cautious. Don't put all your eggs in one basket – diversification is your friend. Focus on companies that are solid and have a good track record. And definitely keep an eye on what the Fed is doing. As for trading recommendations, I'd say consider taking some profits in the tech sector, given its recent runup. Look into some of the more defensive sectors like utilities or consumer staples if you're feeling nervous. And always, always do your own research before making any moves. That's all for today, folks! Penny Pincher, signing off. Remember to invest smart, not hard!