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📈Just when we thought 2025 was calming down, Trump decides to hit Mexico, Canada, and China with fresh tariffs—and markets are NOT handling it well. Here’s everything you need to know about this week’s rollercoaster.
📉 STOCKS TANK AFTER TARIF FALLOUT
Wall Street was actually having a good day... until the White House confirmed:
✅ 25% tariffs on Mexico & Canada
✅ 10% tariffs on China
✅ 100% tariffs coming for BRICS if they ditch the dollar
Market Reaction:
📉 Dow Jones: -0.75% (-337 points)
📉 S&P 500: -0.50%
📉 Nasdaq: Barely held a +0.2% gain
This overshadowed strong Apple earnings and a cooling inflation report, causing investors to hit the panic button.
🔥 INFLATION STILL ABOVE 2%—FED IS STUCK!
The Fed’s Core PCE (inflation gauge) hit 2.8%, exactly as expected.
BUT—tariffs could make inflation WORSE, meaning rate cuts are likely DELAYED past June.
The market was pricing in rate cuts soon… now? Not so fast.
What does this mean? Higher rates = tougher mortgage, loan, and credit card payments.
📊 WINNERS & LOSERS—WHO’S MAKING $$$?
📉 LOSERS:
🚗 Automakers (Ford, GM, Tesla) → Supply chains hit HARD.
🛍️ Retailers (Target, Walmart, Nike) → Higher import costs = higher prices.
💻 Tech stocks (Nvidia, Apple, Microsoft) → China exposure = BAD news.
📈 WINNERS:
💰 Gold ($2,860/oz) → Investors hedging against uncertainty.
💵 US Dollar (DXY +0.5%) → Safe-haven demand is pushing it higher.
🏦 Defense stocks (Lockheed, Northrop Grumman) → Escalating global tensions = $$ for defense.
🏡 HOUSING & MORTGAGES—WHAT NOW?
💥 Homebuyers are out of luck → Rates were supposed to drop, but now?
💥 Expect HIGHER mortgage & loan rates as the Fed delays rate cuts.
💥 Sellers might hold off listing homes = Less inventory, higher prices.
🚨 If you were planning to refinance, wait for clarity! 🚨
🔮 WHAT TO WATCH NEXT?
📅 Monday, Feb 3: Tariffs take effect. Will Mexico/Canada/China retaliate?
📅 Friday, Feb 7: January Jobs Report → Key for the Fed’s next move.
📅 Next Week: Google & Amazon report earnings—will they warn about tariffs?
💬 FINAL THOUGHTS—WHAT SHOULD YOU DO?
Markets HATE uncertainty, and right now, we’re getting a whole lot of it.
🔹 Expect volatility—big swings in both directions.
🔹 Watch commodity prices—gold and oil are moving.
🔹 Don’t panic sell, but stay defensive—cash isn’t a bad idea right now.
💬 What’s your move? Bullish or Bearish? Hit reply and let me know!
🚀 Stay ahead of the chaos—see you next week!
—Trades & Gains Team
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