Market Buzz: Moody’s Downgrade & Global Jitters
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Fresh news and strategies for traders. SPY Trader episode #1177. Alright, folks, welcome back to Spy Trader! It's 6 am on Tuesday, May 20th, 2025, and your pal, Barnaby "Buckshot" Butterfield, is here to break down what's shakin' in the market. So, what's the buzz? Well, the S&P 500 managed to string together its sixth straight day of gains yesterday, bouncing back from an early dip. The Dow and Nasdaq also closed in the green. Yeartodate, the S&P is up 1.3%, the Dow's climbed 0.3%, but the Nasdaq's still lagging a bit, down 0.5%. As of yesterday, the Dow was sitting pretty at around 42,654.74. Now, for the notsosunny news: Moody's decided to tap the U.S. credit rating, citing those "persistent, large fiscal deficits." That's got Treasury yields climbing. Plus, the IMF's sayin' U.S. trade policy is doing a 180, and that's messin' with their global outlook. Speaking of trade, Walmart's planning on bumping up prices soon because of those pesky tariffs. Geopolitically, things are still a bit spicy. President Trump's apparently got calls lined up with Putin and Zelenskyy to chat about ending the war in Ukraine. And right after Trump left the Middle East, Israel launched a new military operation in Gaza. So, yeah, plenty to keep an eye on. On the macro front, that GDP number came in at a notsohot 0.3% for the first quarter. The trade deficit's widened, and while inflation averaged 2.8% over the last decade, it's been a rollercoaster the last few years. The Fed's playing the waiting game with interest rates, trying to avoid both higher inflation and a weak economy. And that unemployment rate of 4.2%? Buckle up, 'cause it might be headin' north. Sectorwise, healthcare, especially managed care, had a good day yesterday. Energy? Not so much, even with oil prices bouncing back. Natural gas took a tumble. Alright, Buckshot's got a few ideas for ya. First off, don't put all your eggs in one basket. Diversify, diversify, diversify! Maybe even mimic the S&P 500's allocations as a starting point. With all the uncertainty, think about bulking up on those defensive, historically stable sectors. Healthcare might be one of them. Keep those peepers peeled on the economic indicators – GDP, unemployment, inflation, retail sales… they're all clues! And hey, pay attention to what the analysts are sayin', but remember to take it with a grain of salt. That's all the wisdom I've got for ya today, folks. Stay informed, stay frosty, and I'll catch you on the next Spy Trader!
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