Latest news with #P500ETFTrust
Yahoo
29-05-2025
- Business
- Yahoo
UBS: Trade Chaos Fans Fed's Caution
SPDR S&P 500 ETF Trust (SPY) slips as UBS warns that tariff uncertainty will keep the Federal Reserve on the sidelines. UBS Chief Economist Paul Donovan notes that a U.S. trade court invalidated roughly half of President Trump's emergency-power tariffs, lifting a significant tax burden but leaving uncertainty firmly in place. Futures markets are pricing in two quarter-point Fed rate cuts this yearone in September and another by year-endafter the Fed's own minutes reaffirmed a wait-and-see stance amid policy ambiguity. Donovan argues that while the court decision eases costs for consumers and companies, it doesn't reset to factory settingsthe ruling will be appealed, and future tariff moves or alternate legislation could reimpose trade taxes. That back-and-forth may prompt businesses to delay investment or hiring and hold off further price increases until the outlook clears. Investors should care because persistent tariff risks can dampen growth, keep interest rates elevated for longer and weigh on market sentiment. With the Fed's next policy meeting slated for June 1112, markets will be watching for any shift in guidance on the appeal process or fresh trade-related developments. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
UBS: Trade Chaos Fans Fed's Caution
SPDR S&P 500 ETF Trust (SPY) slips as UBS warns that tariff uncertainty will keep the Federal Reserve on the sidelines. UBS Chief Economist Paul Donovan notes that a U.S. trade court invalidated roughly half of President Trump's emergency-power tariffs, lifting a significant tax burden but leaving uncertainty firmly in place. Futures markets are pricing in two quarter-point Fed rate cuts this yearone in September and another by year-endafter the Fed's own minutes reaffirmed a wait-and-see stance amid policy ambiguity. Donovan argues that while the court decision eases costs for consumers and companies, it doesn't reset to factory settingsthe ruling will be appealed, and future tariff moves or alternate legislation could reimpose trade taxes. That back-and-forth may prompt businesses to delay investment or hiring and hold off further price increases until the outlook clears. Investors should care because persistent tariff risks can dampen growth, keep interest rates elevated for longer and weigh on market sentiment. With the Fed's next policy meeting slated for June 1112, markets will be watching for any shift in guidance on the appeal process or fresh trade-related developments. This article first appeared on GuruFocus.
Yahoo
30-04-2025
- Business
- Yahoo
Stock ETFs Rebound Despite Disappointing GDP Report
U.S. stock ETFs bounced off their worst levels Wednesday after disappointing economic reports reignited concerns over President Trump's trade war and its economic impact. According to the Bureau of Economic Analysis, the U.S. economy contracted at a 0.3% annualized pace in the first quarter, worse than the 0.2% decline economists were expecting and the first negative quarter in three years. While the headline was undeniably weak, the underlying details of the report were more mixed. In a rush to get ahead of Trump's tariffs, companies front-loaded imports, leading to a staggering 41.3% annualized surge in goods from abroad. That surge subtracted a whopping 5 percentage points from GDP. At the same time, those imports helped boost inventories, which added back 2.3 percentage points. Strip out these large, temporary swings, and the economy looked healthier beneath the surface. Harvard economist Jason Furman estimates that 'core GDP'—defined as Final Sales to Private Domestic Purchasers—rose at a 3% pace in Q1, supported by a 1.8% increase in personal consumption, a 9.8% jump in business fixed investment, and a 1.3% rise in residential investment. Still, he warned that some of the strength in business spending may have come from companies pulling forward demand in anticipation of higher tariffs. Adjusting for that, Furman sees real growth likely in the 2% to 3% range. That may help explain why markets took the GDP report in stride. The SPDR S&P 500 ETF Trust (SPY) was last down 0.8%, after falling as much as 2.3% earlier in the session. Even at its lows, SPY remained well above its April bottom, with the ETF up more than 10% from that level. A separate report showing that private employers added only 62,000 jobs in April, well below the expected 115,000, also failed to rattle investors. The official nonfarm payrolls report from the Bureau of Labor Statistics is due Friday, with economists forecasting a gain of 135,000 jobs. Despite the weaker data, investors appear to be betting that Trump will either backtrack on tariffs or soften their impact enough to avoid tipping the economy into a recession. Hopes are especially high that the administration will scale back the draconian 145% tariffs currently applied to Chinese goods. Skeptics argue that the damage may already be done or that Trump won't reverse course. Reports of plunging shipping volumes and deteriorating supply chains add to those will tell which camp is right. But, for now, investors choose to see the glass as half | © Copyright 2025 All rights reserved 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
Yahoo
30-04-2025
- Business
- Yahoo
Stock ETFs Rebound Despite Disappointing GDP Report
U.S. stock ETFs bounced off their worst levels Wednesday after disappointing economic reports reignited concerns over President Trump's trade war and its economic impact. According to the Bureau of Economic Analysis, the U.S. economy contracted at a 0.3% annualized pace in the first quarter, worse than the 0.2% decline economists were expecting and the first negative quarter in three years. While the headline was undeniably weak, the underlying details of the report were more mixed. In a rush to get ahead of Trump's tariffs, companies front-loaded imports, leading to a staggering 41.3% annualized surge in goods from abroad. That surge subtracted a whopping 5 percentage points from GDP. At the same time, those imports helped boost inventories, which added back 2.3 percentage points. Strip out these large, temporary swings, and the economy looked healthier beneath the surface. Harvard economist Jason Furman estimates that 'core GDP'—defined as Final Sales to Private Domestic Purchasers—rose at a 3% pace in Q1, supported by a 1.8% increase in personal consumption, a 9.8% jump in business fixed investment, and a 1.3% rise in residential investment. Still, he warned that some of the strength in business spending may have come from companies pulling forward demand in anticipation of higher tariffs. Adjusting for that, Furman sees real growth likely in the 2% to 3% range. That may help explain why markets took the GDP report in stride. The SPDR S&P 500 ETF Trust (SPY) was last down 0.8%, after falling as much as 2.3% earlier in the session. Even at its lows, SPY remained well above its April bottom, with the ETF up more than 10% from that level. A separate report showing that private employers added only 62,000 jobs in April, well below the expected 115,000, also failed to rattle investors. The official nonfarm payrolls report from the Bureau of Labor Statistics is due Friday, with economists forecasting a gain of 135,000 jobs. Despite the weaker data, investors appear to be betting that Trump will either backtrack on tariffs or soften their impact enough to avoid tipping the economy into a recession. Hopes are especially high that the administration will scale back the draconian 145% tariffs currently applied to Chinese goods. Skeptics argue that the damage may already be done or that Trump won't reverse course. Reports of plunging shipping volumes and deteriorating supply chains add to those will tell which camp is right. But, for now, investors choose to see the glass as half | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
28-03-2025
- Business
- Yahoo
This Is the Cardinal Sin Warren Buffett Says Investors Should Avoid
If you're picking individual stocks, it's inevitable that you are going to pick some poorly performing investments. Not all your stocks are going to be winners. Things can happen unexpectedly that impact a stock, whether it's the business's own doing or broader macroeconomic conditions. This year, for instance, many stocks are struggling due to tariffs, which are out of their control. Billionaire investor Warren Buffett believes there's one particularly bad, "cardinal sin" that investors should avoid. Doing this is not only a waste of time but also a waste of money. This is a lesson he learned from the late Charlie Munger. There's nothing more discouraging for investors than to lose money on a stock that they thought had plenty of upside and room to grow. However, what's potentially worse is hanging on and hoping the money losing investment eventually will turn around and rise in value, at least until you are able to recover the originally invested amount. But doing so -- assuming the original investment will turn around in the first place -- can be a waste of time if you're deep in the red, causing you to potentially miss out on other opportunities. Buffett says that it was his longtime partner, the late Charlie Munger, who taught him about what he calls a "cardinal sin" to avoid in investing. "Delaying the correction of mistakes" and "thumb-sucking" are what retail investors today may refer to as simply "bag holding." The primary danger retail investors face in such situations is they don't necessarily realize they were holding on to the bag for too long, blinded by hopes for a turnaround in the stock price that will at least reach break-even price. And when they do realize, it's probably too late. This is why I believe technical analysis has value in investing, as resistance levels can be areas where prudent investors should be looking to unload a stock, especially if it has been struggling for a while. Munger also pointed out that problems "cannot be wished away," which is sage advice for investors who may be hanging on to bad stocks in the hopes that they will recover. Selling a stock is effectively a finality, confirming that you've lost money on it and that it was a bad buy -- but it's also cutting your losses. However, by holding on, you're still "wishing" the problem will go away and that the stock will one day recover. A good strategy for investors may be to take money out of losing investments and put it into an exchange-traded fund (ETF) that mirrors the S&P 500. That can be a good place to park your money while you consider other opportunities. And, at least in the long run, you can be confident that it will rise in value. One ETF which may be a popular option in this regard is the SPDR S&P 500 ETF Trust (NYSEMKT: SPY). It has been a great way to track the S&P 500. Its total returns (including dividends) are up more than 200% over the past decade. For decades, the S&P 500 has averaged annual returns of around 10%. It can offer some great long-run stability, while allowing you to also grow your portfolio over the years. It's a much better option than simply holding money in a losing stock which may not have much hope of a recovery. Unless you have a compelling reason to believe that an underperforming stock can turn things around, you may want to consider dumping it and deploying that money into a better investment, like an ETF that tracks the S&P 500, giving you exposure to the best stocks in the world. Simply hoping that things will improve can be a costly strategy. Before you buy stock in SPDR S&P 500 ETF Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SPDR S&P 500 ETF Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $739,720!* Now, it's worth noting Stock Advisor's total average return is 870% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 24, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This Is the Cardinal Sin Warren Buffett Says Investors Should Avoid was originally published by The Motley Fool Sign in to access your portfolio
