Market Movers: Tariffs, Tech, and Trading Tips

Fresh news and strategies for traders. SPY Trader episode #1036. Hey folks, it's your pal Penny Pincher here, and welcome to Spy Trader! It's 6 am on Friday, March 21st, 2025, and let's dive into what's moving the markets. So, the big picture is that the US stock market is still trying to shake off that correction we saw earlier this month – you know, that 10% dip from the peak. It's been a bit of a rollercoaster, with the S&P 500 potentially closing down for the fourth month in a row since last October. We had a nice little rally midMarch, but overall, the major indexes ended the week lower. On the bright side, Morningstar thinks the market is trading at a slight discount, about 5% below fair value. Now, let's talk sectors. Tech, which has been the golden child for the past couple of years, is now lagging behind. Money's been flowing out of tech and into more defensive areas like healthcare, consumer staples, and even financials. Consumer staples, energy and real estate all rose in February while consumer discretionary and communications services tanked. Interestingly, consumer defensive stocks are now considered overvalued, trading at a premium. In the news, Trump administration's new tariffs are causing some jitters. Everyone's worried about what this could mean for economic growth. The Fed decided to hold interest rates steady at 4.5% at their March meeting, citing – you guessed it – increased uncertainty. They even lowered their GDP growth forecast for the year and raised their inflation outlook. Accenture shares got whacked after their earnings report, apparently government spending cuts are hurting. And even though Nvidia had their big GTC Conference, showcasing all their fancy new chips, the stock didn't exactly skyrocket after CEO Jensen Huang's comments. On the macro front, things are looking a little soft. Global growth is expected to slow down. Inflation is still hanging around like that one guest who never leaves. Consumer confidence is down. Those tariffs are expected to keep inflation above the Fed's target. The US economy is expected to slow down with a projected annual GDP growth of only 2.2%. Alright, drumroll for Penny's trading recommendations! I'm leaning towards value over growth right now. Growth stocks might be a bit pricey. I also like smallcap stocks; they might be undervalued. And don't forget about international diversification – European stocks have been doing pretty well this year. Remember to keep a longterm perspective. Market hiccups happen and finally, keep an eye on those tariffs and what the Fed's up to – those things can really move the needle. Oh, and before I forget, a little something to brighten your day. What do you call a credit union that only gives loans to poets? A prose and cons bank. Thanks for tuning in to Spy Trader! Until next time, keep those portfolios green!