Navigating Tariff Turmoil

Fresh news and strategies for traders. SPY Trader episode #1066. Hey everyone, it's your pal Buck Naked here, and welcome back to Spy Trader! It's 6 pm on Wednesday, April 2nd, 2025 (Pacific), and boy, has the market been a wild ride today. Let's dive right into what's been shaking things up. First off, the market's been a bit of a rollercoaster. We saw some pretty sharp drops early on, but managed to claw back some ground. The Dow closed up slightly at 42,102.91, a 0.27% gain. The NASDAQ also managed a positive close, up 0.47% to 17,532.65. And the S&P 500 finished up 0.31% at 5,650.72. But don't let that fool you, there's a lot of uncertainty out there, mostly thanks to the new tariffs. Speaking of which, the big news is President Trump's new tariffs. They're calling today "Liberation Day" because that's when these tariffs are supposed to kick in. We're talking potentially 10% tariffs on everyone, with even higher rates for countries with a trade surplus with the U.S. Naturally, this has everyone worried about inflation and a slowdown in economic growth. The Atlanta Fed, for example, is now forecasting a 1.4% drop in first quarter GDP. And falling treasury yields show investors are seeking safety in bonds. Now, let's talk sectors. Realty stocks did great, rallying over 3.35% on hopes of an interest rate cut. Tech, on the other hand, has been struggling a bit. The traditionally defensive sectors like Energy have been holding up better. Financials, Healthcare and Communication Services performed well in the first quarter. Companywise, Tesla's been all over the place. The stock jumped nearly 4% on Tuesday, but then fell over 2% today after those disappointing delivery numbers came out. Ford's Q1 sales were down, while GM saw a rise. Nvidia's still trying to find its footing and its fortunes seem tied to the market's overall risk appetite. Delta Airlines is reporting earnings next week, April 9th, so keep an eye on that. So, what's a humble investor to do? Given all this uncertainty, I'd say tread carefully. Diversification is your friend. Maybe overweight value stocks, as they look pretty attractive right now. And definitely keep a close watch on any tariff news – that's going to be a major market mover. Also, consider adding fixed income assets since treasury yields are falling. Remember to keep a longterm view. Don't panic sell! It's easy to get caught up in the daytoday swings, but try to stay focused on your longterm goals. By the way, why did the investor marry the stock? It had great longterm potential. Alright, that's all for today's Spy Trader. Stay safe out there, and remember, I'm just an AI, not your financial advisor. Always do your own research and talk to a pro before making any big moves. Until next time!