Market Pulse: Highs and Headwinds cover art

Market Pulse: Highs and Headwinds

Market Pulse: Highs and Headwinds

Listen for free

View show details

About this listen

 Fresh news and strategies for traders. SPY Trader episode #1266. Hey there, Spy Traders! It's Money Mike, your friendly neighborhood financial guru, here to kickstart your day with the latest market scoop. It's 6 am on Thursday, June 26th, 2025, Pacific time, and we've got a lot to unpack. The US stock market is showing a mixed but generally positive performance, with major indices still near alltime highs, driven by a resilient economy and anticipation of a gradual easing cycle from the Federal Reserve.However, underlying concerns like inflation pressures from tariffs and moderating growth are definitely tempering the outlook.Let's dive into the key news items. As of today, the S&P 500 is up by about 0.96%, trading around 6,025, and it's climbed over 11% in the last year, hovering near its alltime high from February. The Dow Jones Industrial Average is up by 0.89% today, sitting at 42,581, and it's seen a solid 9% increase over the year. The techheavy Nasdaq Composite has gained 0.94% today, reaching 19,630, also near record highs, with the NASDAQ 100 up over 15% yeartodate.The market's seen a significant rebound since a steep drop back in March and April when tariff policy announcements had the S&P 500 flirting with a bear market.Now, for sector performance, Technology and Communication Services are leading the pack. Information Technology is up 7.49% yeartodate, and Communication Services is up 8.12% yeartodate. Large companies like Nvidia and AMD are big contributors here. Industrials are also showing strong yeartodate performance, up 9.50%, and Financials are up 6.60%. On the flip side, Utilities and Real Estate are currently lagging, with Real Estate down 2.45% daily and Utilities down 1.34% daily. Consumer Discretionary is down 3.78% yeartodate, Healthcare is down 2.70%, and Energy is down 2.47%.In recent news, a fragile ceasefire between Israel and Iran has provided some market support, helping deescalate tensions. However, the impact of President Trump's new tariffs is a significant theme. While so far, tariffs have had a limited impact on overall inflation, analysts expect upward pressure on goods prices in the second half of 2025 as pretariff inventories deplete. The average effective tariff rate is around 15%, the highest since 1936. On the economic data front, weekly jobless claims held steady. And we're keeping an eye out for upcoming earnings reports from major companies like Walgreens and Nike.Diving into macroeconomic conditions, the Federal Reserve has held interest rates steady at 4.25% to 4.5% for the fourth consecutive meeting, adopting a 'waitandsee' approach. While the decision was unanimous, there's a growing divide within the Fed, with some officials anticipating no rate cuts this year, while others still expect two. The Fed is described as being in a 'gradual easing cycle,' similar to 1995. Inflationwise, the annual CPI for May 2025 increased to 2.4% from 2.3% in April, marking the first acceleration in four months. Core inflation remained at 2.8% in April. Forecasts suggest inflation could rise noticeably from the third quarter of 2025, potentially exceeding 3% yearonyear, primarily due to tariff impacts.For GDP growth, the US economy contracted by 0.2% in the first quarter of 2025, the first contraction in three years, partly due to a surge in imports in anticipation of higher tariffs. However, the economy is poised for a strong rebound in the second quarter, with the Atlanta Fed's realtime GDP estimate pointing to 3.4% growth. The Fed expects real GDP growth to slow to 1.4% for the full year 2025. Employment remains relatively stable, with total nonfarm payroll employment increasing by 139,000 in May, and the unemployment rate unchanged at 4.2%. And yes, the US national debt is climbing rapidly, on track to double over the next three decades, which raises longterm fiscal concerns.Let's talk about some company events. Nvidia has resecured its position as the world's most valuable company. Its shares hit fivemonth highs and are nearing record closes, with anticipation building around its shareholder meeting today and continued strong demand fueled by AI. Advanced Micro Devices, or AMD, shares are also showing gains, contributing to the strong performance in the technology and semiconductor sectors. Super Micro Computer, or SMCI, has seen significant price increases. Analysts suggest Micron is gaining market share in AI. Wedbush raised its price target on Microsoft, citing AI's potential to transform its cloud growth trajectory. AT&T recently settled data breach lawsuits for 177 million dollars. Stellantis NV shares rose after an upgrade from Jefferies, with data suggesting an earnings turnaround. And Circle Internet Group saw a rise after a significant plummet, possibly indicating profittaking after a fierce rally postIPO.Now, for my analysis and insights. The current state of the US stock market reflects a delicate balance of bullish momentum and looming uncertainties. The ...

What listeners say about Market Pulse: Highs and Headwinds

Average Customer Ratings

Reviews - Please select the tabs below to change the source of reviews.

Audible.com.au reviews

Amazon Reviews
No Reviews are Available
In the spirit of reconciliation, Audible acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.