Has the Stock Rout Run Its Course?
Analysts are divided on the odds the tariff sell-off has run its course. Some see the potential severity of the negative outcomes as not fully priced into the market, making it wise to stay cautious and wait for more information, while others believe many of the announced tariffs will be negotiated down, leading to better fundamentals for the market and economy.
Lead: Stock markets have been volatile in recent days, with the Dow Jones Industrial Average experiencing a significant drop on Thursday and Friday. Analysts are divided on whether the sell-off has run its course, with some warning of potential negative outcomes and others predicting better times ahead.
Tariffs Loom Large
President Donald Trump’s wide-ranging "reciprocal" tariffs against U.S. trading partners are scheduled to go into effect at midnight, with the potential to drive up prices for U.S. consumers and have far-reaching fallout for the economy. The tariffs, which range from at least 10% against almost every country in the world, have already been put in place, with additional tariffs against certain countries set to take effect at 12:01 a.m. early Wednesday morning.
Key Highlights:
- Tariffs are set to go into effect at midnight, with potential consequences for the economy and consumers
- Analysts are divided on the fate of the tariffs, with some predicting a negotiated settlement and others warning of negative outcomes
- The Dow Jones Industrial Average has experienced significant volatility in recent days, with several stocks experiencing significant changes in value
Bitcoin Falls Below $78,000
Bitcoin slipped in Tuesday trading, dropping from morning levels as investors continued to evaluate Trump administration trade policy. Several crypto-related stocks were trading lower in afternoon action, including Strategy, Coinbase Global, and MARA Holdings.
RPM Stock Drops on Weaker-Than-Expected Results
RPM International reported fiscal third-quarter results that came in weaker than analysts projected, with adjusted earnings per share of $0.35 and revenue that fell 3% year-over-year. The company attributed the weakness to unfavorable weather conditions, which continued and became more widespread in the third quarter.
Worried About Retiring in a Slump? What Experts Say
If you’re worried about retiring in a market slump, experts urge caution and a cool head. They advise reevaluating your retirement needs, shoring up savings, and taking time before making dramatic changes to your portfolio. "You never know how these things are going to end," said Marcos Segrera, wealth manager and principal at the Florida-based financial advisory firm Evensky & Katz / Foldes. "Don’t make long-term decisions based on short-term information."
CVS Stock Pops on Medicare News, Outlook
CVS Health shares jumped Tuesday after the company improved its full-year outlook and named a new chief financial officer. The stock was also getting a boost from the announcement that the federal government will pay Medicare insurers more than previously expected.
Supermicro Levels to Watch
Supermicro shares jumped after several analysts pointed out that the company would only need to increase its global prices by 4%, based on the portion of its hardware that would be affected by tariffs. Investors should watch major overhead areas on Supermicro’s chart around $48 and $63, while also monitoring vital support levels near $26 and $17.
Key Quotes:
- "I think the potential severity of the negative outcomes is not fully priced into the market, so it makes sense to stay cautious and wait for more information," said Chris Buchbinder, principal investment officer of the Capital Group Dividend Value ETF.
- "We believe that many of the announced tariffs last week will be negotiated down. Meaning the fundamentals of this market and economy, when the dust settles, may be better than what is currently being reflected in asset prices," said Marc Zabicki, Chief Investment Officer at LPL Financial.
- "A U.S. Administration that doubles down will have immense global implications for 2025 and the years and decades ahead," said Jim Reid, head of thematic and macro research at Deutsche Bank.
Keywords: Dow Jones, Tariffs, Stock Market, Bitcoin, Cryptocurrency, Retirement, Medicare.
Hashtags: #stocks #tariffs #economy #retirement #cryptocurrency
