Latest news with #Nasdaq100
Miami Herald
17 hours ago
- Business
- Miami Herald
Stock market whipsaws on latest tariff tirade, triggers TACO trade
Investors may not be fans of stock market volatility, but that doesn't bother President Trump. His back-and-forth trade and tariff war updates have sent stocks on a roller coaster ride since he announced tariffs on Canada, Mexico, and China in February. The stock market's nerve-racking swings include a 19% tumble from mid-February through early April, and a 20% rally since April 9, when Trump paused many reciprocal tariffs that rocked stocks after they were announced on April 2. Don't miss the move: Subscribe to TheStreet's free daily newsletter Investors have oscillated between pessimism that tariffs would send the U.S. into economic stagnation or recession, and optimism that negotiations would tame the worst of tariffs' bite. The seesaw pattern continued this week. Stocks tumbled on Friday, May 23, when Trump threatened 50% tariffs on the European Union, only to rally on Tuesday after Trump said he'd delay implementing them on the EU until July. The volatility continued on Friday, May 30. The S&P 500 lost over 1% at session lows after Trump made a bold accusation on China trade, only to recover most of the day's losses on hopes that cooler heads would again prevail over the weekend. Image source:The on-and-off again nature of Trump's trade war and the stock market's reaction to it has led to investors buying dips to profit from potential easing of rhetoric amid negotiations. Profitable dip buying has led to the coining of the "TACO" trade, where TACO stands for "Trump Always Chickens Out." The phrase is credited to Financial Times writer Robert Armstrong, who noticed the phenomenon. Related: Jamie Dimon sends terse message on stocks, economy The sell-off and rally from last Friday and Tuesday are perfect examples of the TACO trade in action. Trump made a huge, eye-popping threat, only to back away from it, claiming positive trade talk developments. Those who bought low on the S&P 500 last Friday and sold high on Tuesday pocketed a quick 2.7%. The returns were even better for those risk-tolerant enough to try their hands at technology stocks. Buying the dip in the Nasdaq 100 or high-flying artificial intelligence stock Palantir delivered 3.2% and 6%, respectively. Stocks' action on May 30 suggests many think that Trump's latest tough talk toward China may be similarly walked back, resulting in gains. The S&P 500 and Nasdaq finished May 30th up 1.3% and 1.5% from their intraday low. Palantir gained 6.1% from its low. President Trump kicked off a major trade war with China in April when he set reciprocal tariffs at 34%, bringing total tariffs to 54%, including the 'fentanyl' tariff. China responded in kind, and the tit-for-tat eventually left China's tariffs at 145% and China's US tariffs at 125%. Those rates were high enough to effectively shutter trade between the two economic giants, which caused ripples in supply chains, sending retailers heavily reliant on low-cost apparel and electronics scrambling. Related: Secretary Bessent sends message on Walmart price increases due to tariffs Absent relief, most began to assume a recession driven by tariff-driven inflation was inevitable. Those fears were mitigated when Trump surprised everyone, announcing he would roll back China tariffs to 30% on May 14 for 90 days in a sign of good faith after what appeared to be positive initial trade talks. Unfortunately, that optimism faded quickly after Trump delivered a stark rebuke of China on May 30. "Two weeks ago, China was in grave economic danger! The very high Tariffs I set made it virtually impossible for China to TRADE into the United States marketplace," wrote Trump on Truth Social. "I was what was happening and didn't like it, for them, not for us. I made a FAST DEAL with China... Everybody was happy!... The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" More Economic Analysis: Hedge-fund manager sees U.S. becoming GreeceA critical industry is slamming the economyReports may show whether the economy is toughing out the tariffs Trump's frustration with China is evident, and the implications for markets aren't great. China may be negotiating tough, like Trump, so it may take longer to seal a deal, or the final agreement may not include much more in tariff relief. If so, recession worry will escalate. Stock market participants, however, don't seem concerned, embracing the TACO trade fully on Friday. Will that bet pay off? We'll have to wait and see if Trump's rhetoric eases over the coming days. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
a day ago
- Business
- Yahoo
Suze Orman Thinks the Stock Market Will ‘Absolutely Skyrocket' This Year: 5 Types of Investments Poised To Benefit
Suze Orman is feeling optimistic about the stock market. On a mid-May episode of her 'Women & Money' podcast, she predicted that the market could 'absolutely skyrocket' through the end of 2025 and into early 2026, despite short-term volatility. In her view, long-term investors should avoid fear-based selling and instead focus on building wealth through smart, diversified investing. Learn More: Find Out: Orman emphasized the importance of spreading out your investments and staying consistent, especially if you're not a daily market watcher. 'One stock, three stocks, five stocks does not a portfolio make,' she said. 'You need to have at least 25, maybe even 50 individual stocks, so that you could have true diversification.' She recommended index ETFs as 'one of the best ways to invest.' Here are the types of investments she believes are best positioned to benefit as the market rises. Orman expects large growth stocks to outperform in the coming months, especially as the market gains momentum through the end of 2025. 'I think you will find that large growth stocks are stocks that increase in price these coming next few months,' she said. 'Many of the Magnificent Seven, not all, will participate. Some of the FAANG stocks will participate.' While she didn't name specific companies, the 'Magnificent Seven' and 'FAANG' groups include major tech players like Apple, Amazon, Meta, Alphabet and Microsoft — firms that have historically led market rallies. Check Out: Orman pointed to growth-oriented ETFs as a solid option for investors who prefer a simpler approach. These funds are composed entirely of companies expected to outperform the broader market. Two she specifically mentioned were: SPYG: S&P 500 Growth ETF VUG: Vanguard Growth ETF 'Those are ETFs that are made up 100% of your growth,' she explained. 'So you might want to mix a little bit in that for now.' Core holdings in broad-based index ETFs still play an important role in Orman's long-term strategy. Examples she highlighted include: SPY: S&P 500 ETF VOO: Vanguard S&P 500 ETF VTI: Vanguard Total Stock Market ETF 'They're really a blend of stocks,' she said. 'No matter what's happening in the market, you are participating.' Orman explained that while growth stocks may outperform now, value stocks could lead in future cycles, which is why blended ETFs offer useful all-weather exposure. While she once warned against crypto, Orman now believes bitcoin is here to stay. 'There is not a 40-year-old, a 30-year-old that I can talk to that doesn't want to put all their money into bitcoin,' she said. For those interested, she recommended gaining exposure through: IBIT: iShares Bitcoin Trust ETF MSTR: MicroStrategy, which mirrors bitcoin's performance But she warned that crypto remains highly volatile. 'Bitcoin will absolutely follow the Nasdaq 100. … If the Nasdaq 100 happens to go down, bitcoin is going to go down.' While she doesn't see gold taking off right now, Orman believes it's a good hedge against uncertainty. 'Gold is a safe haven, believe it or not,' she said. Her top pick? GLD, the SPDR Gold Shares ETF. She advised avoiding gold miners. 'I think you are better off investing in the ETF GLD versus the miners GOLD,' she said. 'The miner stocks are just not really functioning the way that they should be.' Orman's core philosophy hasn't changed: Consistent saving, emotional discipline and a long-term mindset are the keys to building real wealth. 'True wealth comes when you feel secure,' she said. 'And the reason you feel secure is that you know you have savings to get you by if certain things go wrong.' More From GOBankingRates These 10 Used Cars Will Last Longer Than an Average New Vehicle This article originally appeared on Suze Orman Thinks the Stock Market Will 'Absolutely Skyrocket' This Year: 5 Types of Investments Poised To Benefit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
2 days ago
- Business
- Business Insider
Stock Market News Review: SPY, QQQ Dip as U.S.-China Tensions Flare, Consumer Sentiment Ends Losing Streak
Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) closed the Friday session well above their afternoon lows, although the benchmark indices were unable to finish in the green ahead of the weekend. Confident Investing Starts Here: This morning, President Trump accused China of violating the preliminary trade deal reached by the countries in Geneva. He didn't dive into the specifics, though he later said in an Oval Office press conference that he would like to speak with China President Xi Jinping about the situation. 'Hopefully we'll work that out,' said Trump. U.S. Trade Representative Jamieson Greer provided more details, saying that China was moving too slowly in removing tariff countermeasures and that it hadn't progressed in removing export restrictions on rare earth metals used in products like vehicles and semiconductors. The market sunk lower during the afternoon after Bloomberg reported that the U.S. is preparing sanctions on subsidiaries of Chinese technology companies included in the Entity List. Sources close to the matter added that the U.S. will likely enforce additional restrictions following the subsidiary sanctions in a sign of escalation between the two world powers. Aside from trade updates, the University of Michigan's May Index of Consumer Sentiment tallied in at 52.2, beating the expectation for 51.0 and ending four consecutive months of falling sentiment. The reading remained unchanged from April and was much higher than the preliminary May reading of 50.8 as a result of the U.S.-China preliminary trade agreement. On top of that, the core personal consumption expenditures (PCE) index for April tallied in at 2.5%, meeting expectations and falling from 2.7% in March. The index is the Fed's preferred inflation gauge and excludes food and energy prices included in the PCE index because of their volatility. The S&P 500 ended the day just barely lower with a 0.01% loss while the Nasdaq 100 fell by 0.11%. At the same time, May turned out to be quite a memorable month, as both indexes registered their strongest monthly performance since November 2023.
Business Insider
2 days ago
- Business
- Business Insider
Nasdaq 100 Index Today: QQQ Drops as U.S.-China Tensions Escalate, Core PCE Falls
The Nasdaq 100 (NDX) is taking a hit on Friday despite the core personal consumption expenditures (PCE) index showing a monthly drop and coming in line with the consensus estimate. That's due to rising tensions between the U.S. and China as the two sides work to settle a trade deal. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Aprils Core PCE tallied in at 2.5% year-over-year, falling from 2.7% in March. Core PCE is the Fed's preferred gauge for inflation and strips out volatile food and energy prices from the regular PCE index. The index represents the prices that consumers spend on goods and services. Despite the easing core PCE, tensions are rising between the U.S. and China. This morning, President Trump said that China has 'TOTALLY VIOLATED ITS AGREEMENT WITH US' in a heated Truth Social post. In response, the world's second-largest economy pressed the U.S. to stop its ' discriminatory restrictions ' on trade and end unfair export practices on the semiconductor industry, among others. Afterwards, Bloomberg reported that the U.S. was planning on targeting subsidiaries of Chinese companies included in the Entity List with sanctions. The restrictions could arrive as early as next month with further sanctions likely to follow, said sources familiar with the situation. The Nasdaq 100 is down by 0.99% at the time of writing. Which Stocks are Moving the Nasdaq 100? A quick look at TipRank's Nasdaq 100 Heatmap will show the specific stocks responsible for the index's decline today. The Magnificent 7 isn't having a magnificent Friday with losses led by Nvidia (NVDA) at -3.54%. The semiconductor leader is likely falling given the escalation in U.S.-China tensions. Other chip companies, like Broadcom (AVGO), Advanced Micro Devices (AMD), and Arm Holdings (ARM) are also in the red. Rising tensions are likely the culprit behind the drop in Tesla (TSLA) and Apple (AAPL) as well given that both companies have a major presence in China. On the other hand, Costco (COST) is up by nearly 4% after the wholesaler reported its fiscal third quarter earnings. QQQ Stock Moves Lower with the Nasdaq 100 The Invesco QQQ Trust (QQQ) is an exchange-traded fund (ETF) designed to track the movement of the Nasdaq 100. As a result, QQQ is falling in correlation with the Nasdaq 100 today. Still, Wall Street believes that QQQ stock has room to run. During the past three months, analysts have issued an average QQQ price target of $575.58 for the stocks within the index, implying upside of 11.74% from current prices. The 102 stocks in QQQ carry 86 buy ratings, 16 hold ratings, and zero sell ratings.
Yahoo
2 days ago
- Business
- Yahoo
Palantir Is Surging. The Stock Leads Nasdaq Gains So Far This Year as Federal Work Expands
Palantir shares climbed Friday amid optimism about the AI darling's expanding work for the U.S. government. Palantir's Foundry technology has been integrated with at least four government agencies, the The New York Times reported Friday. With Friday's gains, the stock has surged nearly 70% this year and leads Nasdaq 100 companies so far in (PLTR) shares climbed Friday amid optimism about the AI darling's expanding work for the U.S. government. The stock was up over 5% in recent trading, making it one of the day's best-performing stocks in the S&P 500. The stock has surged 70% this year, leading the Nasdaq 100's constituents so far in 2025. Palantir's gains have come as its work for the federal government has grown in recent months. The government has integrated a Palantir product called Foundry into at least four agencies, including the Department of Homeland Security and the Health and Human Services Department, The New York Times reported Friday. Officials at the Social Security Administration and Internal Revenue Service have also had discussions with Palantir about buying its technology, the report said. Palantir did not immediately respond to a request for comment, nor did the SSA or IRS. Earlier this week, Fannie Mae, the government-sponsored mortgage backer, announced the launch of an AI-powered crime detection unit in partnership with Palantir. Fannie Mae claimed the unit would help prevent millions of dollars in fraud losses by helping detect fraud 'with speed and precision never before seen in the U.S. housing market.' Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
