Markets Cratering (Patreon)

Tariffs are Hurting!!!!

The Dow plummeted 1,300 points on April 3, with the S&P 500 dropping 3.6%—its worst day since September 2022—and the Nasdaq sliding 3%. This sharp decline followed Trump’s unveiling of sweeping tariffs on April 2, which included a baseline 10% tariff on all imports, effective April 5, with higher rates targeting specific countries. The announcement has heightened fears of a global trade war, rattling investors and businesses alike. Earlier in the year, markets had already been volatile, with the S&P 500 losing $4 trillion in value since its February peak, erasing post-election gains tied to optimism about Trump’s pro-growth agenda.

The primary driver of this panic is the uncertainty and economic fallout anticipated from these tariffs. Economists and investors worry that the import taxes will disrupt global supply chains, increase costs for businesses, and ultimately raise prices for consumers, fueling inflation. Multinational companies like Nike (down 11%), Apple (down 9%), and retailers such as Five Below (down 25%) and Dollar Tree (down 9%) were hit hard, reflecting concerns over higher costs for imported goods. Tech stocks, including Nvidia and Tesla, also saw significant declines, signaling a broader risk-off sentiment.

PS DID NOT DEPLOY any real CASH YET.... only 10% so far on TESLA at $220. Last night, the buy was 0.6% of my cash.

MAG 7 and BTC

Also getting smashed - but BTC holding up VERY well... perhaps now it is a risk off asset?

Note Optimized Trend on the SPX on the Weekly about to flip Negative for first time since 2022.