Market Movers: Fed, Tariffs, and Tech

Fresh news and strategies for traders. SPY Trader episode #1033. Hey everyone, it's your pal Penny Pincher here, and welcome to Spy Trader! It's 6 am on Thursday, March 20th, 2025, and let's dive into what's moving the markets. Futures are looking a bit soft this morning after yesterday's rally, with Dow futures down about 0.4%, the S&P 500 slipping 0.5%, and Nasdaq 100 futures off 0.6%. Seems like that initial excitement over the Fed's rate cut projections is wearing off a bit. So, what's making headlines? Well, the Fed held interest rates steady, but they're still saying we might see two rate cuts this year. However, they also lowered their growth forecast and bumped up their inflation expectations, which is like saying 'We're gonna help you, but things might still be a bit bumpy.' Then there's the whole tariff situation looming, especially with talk about what President Trump might do. Nobody likes uncertainty, and tariffs definitely bring that to the table. In company news, Nvidia is planning to pump 'several hundred billion' into U.S. production. Nike is expected to report some notsogreat numbers, and Boeing is in focus with new orders. FedEx is looking good with a 20% jump in adjusted EPS. Accenture on the other hand, took a hit despite reporting a revenue increase, their profits came in lower than expected. Alright, let's break this down. The market initially liked the Fed's dovish stance, but now everyone's a bit worried about tariffs and slower growth. We're seeing investors rotate into value stocks, especially in the energy sector, as inflation fears linger. Meanwhile, those highflying tech stocks are taking a breather. Be careful in the semiconductor sector! It's looking overvalued and could be ripe for a correction. The Fed's economic outlook is also full of question marks, mainly because of potential policy changes. And here's a joke for you: Why did the algorithm go broke? It couldn't find a profitable loop. So, what do I recommend? Diversify, diversify, diversify! Index funds are your friends. Maybe beef up your exposure to value stocks. The energy sector might have some juice left in it, but be cautious with those semiconductor stocks. Keep a close eye on those economic numbers and maybe consider taking a peek at European stocks – they've been outperforming us so far this year. For longterm plays, consider companies like Microsoft, UnitedHealth Group, Mastercard, Eli Lilly, and Costco. If you want growth, look at Rentokil Initial, Taiwan Semiconductor Manufacturing, Manhattan Associates, Coloplast, ServiceNow, Tyler Technologies, Autodesk, Equifax, Experian, and Copart. But remember, folks, this is just my take. Do your own homework and talk to a financial advisor before making any big moves. Until next time, keep those pennies pinching!