Wall Street WrapUp: March 24th, 2025

Fresh news and strategies for traders. SPY Trader episode #1043. Hey everybody, it's your pal Bubba Butterbean here, and welcome back to 'Spy Trader'! It's 6 pm on Monday, March 24th, 2025, Pacific time, and the markets have just closed. Let's dive right into what's been shaking up Wall Street today. How do you organize a finance party? Start with the budget! Okay, so the big picture is that the market's been a bit of a rollercoaster lately. We've seen some choppy trading, but today we got a nice little jump in stocks, snapping the recent losing streaks. However, valuations are still down after hitting record highs back in February. Investors are still feeling a little anxious due to trade worries and slower economic growth. Some of the big institutional players are even reducing their exposure to U.S. stocks. Looking at the sectors, Consumer Discretionary and Communication Services really took off today, posting the biggest gains. Tech stocks, especially the big ones, haven't been doing so hot recently, and the Nasdaq has been hit hard by tariff concerns. It seems like value stocks are outperforming growth stocks at the moment. Yeartodate, Energy and Health Care have been the top performers, while Consumer Discretionary is lagging. Now, let's talk news. Tariffs and trade policies are still major sources of market volatility. There's a little bit of hope that any upcoming tariffs might be more targeted than initially feared. Also, threats of tariffs on countries buying oil from Venezuela are adding to the mix. The Fed held interest rates steady at its March meeting and indicated they might cut rates twice later this year. They also lowered their economic growth forecast but raised their inflation expectations. We also learned that the Fed will slow down its balance sheet reduction program. And, of course, some companies have reported disappointing earnings, which hasn't helped market sentiment. For example, FedEx shares took a dive after they warned about flattening revenues and lowered their profit guidance. Rocket's acquisition of Redfin and ServiceNow's acquisition of Moveworks made headlines, but they haven't made much impact. From a macroeconomic point of view, GDP growth slowed down in the last quarter, and the Fed expects it to continue to slow down this year. They also expect inflation to rise before easing up next year. The labor market is still healthy, but there are signs it might be cooling off a bit. The Fed is expected to cut rates twice in the second half of 2025. Consumer spending is also expected to slow down this year. So, what should you do with all this information? First off, diversification is key. Spread your investments across different asset classes and sectors to reduce your risk. Bonds and international stocks might offer some support for your portfolio. Remember to keep a longterm perspective and avoid making rash decisions based on shortterm market swings. Even though there are economic concerns, the odds of a recession are still low. Keep an eye on company earnings and news, as that can significantly impact individual stock prices. And, of course, stay informed about trade, monetary policy, and economic indicators. Given the recent outperformance of value stocks, you might want to consider increasing your exposure to them. Also, take a look at your risk tolerance and adjust your portfolio accordingly. If you're riskaverse, consider reducing your exposure to equities and increasing your exposure to fixed income. And, as always, it's a good idea to chat with a qualified financial advisor to get personalized advice. That's it for today's 'Spy Trader'! Remember, don't let the market get you down. Stay positive, stay informed, and I'll catch you next time!