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Trump's Tariffs Shock the Market 📉
Ryan Serkes
April 04, 2025
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Hey Daily Traders,
President Trump's announcement of sweeping tariffs on imported goods has sent shockwaves through the stock market, with the Dow Jones Industrial Average plummeting over 3.3%. While Trump remains optimistic about a market rebound, the immediate reaction reflects investor anxiety about potential disruptions in global supply chains and increased costs for businesses and consumers.
The U.S. Federal Reserve now faces new challenges, as the tariffs could lead to stagflation—a troubling mix of stagnant growth and inflation. Corporate America, particularly in the automotive and tech sectors, is quietly grappling with these changes, as major brands like Nike and Apple reassess their strategies amid significant stock declines. Meanwhile, real estate investors are navigating the potential impact of higher construction costs and economic uncertainty on property values.
Here's what's happening today:
- 📉 Stocks plunge amid new Trump tariffs.
- 📈 Tariffs could lead to stagflation concerns.
- 💼 CEOs remain silent on tariff impacts.
- 🛍️ Major brands hit hard by tariff fallout.
- 🏠 Tariffs may reshape real estate investments.
Question
Do you believe President Trump's tariffs will ultimately benefit the U.S. economy, or are the immediate market declines a sign of long-term disruption?
Reply to this email with your answer
Stock Market  President Trump dismissed concerns over the steep drop in stock markets following his announcement of sweeping tariffs on imported goods. The Dow Jones Industrial Average fell over 3.3%, reflecting investor anxiety about the economic impact of these tariffs. Trump remains optimistic, predicting a market rebound and asserting that the tariffs will ultimately benefit the U.S. economy by countering years of trade imbalances. Despite the president's assurances, the immediate market reaction was negative, with significant declines in major indices. Investors are wary of the tariffs' potential to disrupt global supply chains and increase costs for businesses and consumers. The tariffs are part of a broader strategy to pressure trading partners into more favorable terms for the U.S., but the short-term market volatility suggests a challenging path ahead. Key Takeaway
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Stock Market  The U.S. Federal Reserve is now grappling with the potential economic impacts of President Trump's new tariffs, which could lead to stagflation—a combination of stagnant growth and inflation. The tariffs, reaching up to 50% on some imports, have raised concerns about rising prices and economic slowdown, drawing comparisons to historical economic downturns. Federal Reserve officials, who had been focused on controlling inflation, now face the challenge of balancing inflation risks with a potential economic slowdown. The tariffs' broad scope and high rates could lead to increased consumer prices and slower economic growth, complicating the Fed's monetary policy decisions. The situation underscores the delicate balance central banks must maintain in response to significant policy shifts. Key Takeaway
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Stock Market  Corporate America has largely remained silent in the wake of President Trump's new tariffs, despite significant stock market reactions. Major companies, especially those in the automotive sector, have expressed concerns privately but have not made public statements. The tariffs, described as a departure from the free-trade era, have sparked fears of rising costs and economic uncertainty. As companies navigate this new landscape, they face the challenge of managing costs and maintaining profitability. The lack of public commentary from CEOs suggests a cautious approach as they assess the long-term impacts of the tariffs. This silence contrasts with past instances where corporate leaders have been vocal about policy changes, indicating the complexity and potential risks involved in the current trade environment. Key Takeaway
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Stock Market  American companies are facing significant challenges due to President Trump's tariffs, which have led to sharp declines in stock prices. Companies like Nike, Apple, and Best Buy, which rely heavily on international manufacturing, have seen substantial market value losses. The apparel and tech sectors are particularly affected, with stocks dropping as much as 20% in some cases. The tariffs, which are more severe than anticipated, are forcing companies to reassess their supply chains and pricing strategies. As costs rise, these brands may have to pass on expenses to consumers, potentially impacting sales and profitability. The situation underscores the broader economic implications of trade policies on businesses and the stock market. Key Takeaway
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Real Estate  President Trump's new tariffs are reshaping the landscape for real estate investments, as higher import costs may lead to increased construction expenses and consumer prices. The tariffs, part of a broader strategy to renegotiate trade terms, could deter foreign investment and slow economic growth, impacting real estate markets. Investors are closely monitoring the situation, as changes in trade policy can influence interest rates and property values. The potential for inflation and economic slowdown adds complexity to investment decisions, highlighting the interconnectedness of global trade and real estate dynamics. As the market adapts, stakeholders must consider the long-term implications of these policy shifts on real estate portfolios. Key Takeaway
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Today's Technical Analysis
RSI Buy | MFI Hold | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Buy | STOCH Buy |
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Hold | STOCH Buy |
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Hold | ULTOSC Buy | STOCH Buy |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Hold | STOCH Sell |
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Technical Indicator Information
Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30
Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20
Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80
Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75
Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal
Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20
Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100
Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band
Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price
Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0
Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30
Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI
Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25
Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.
Disclaimers
The information in our newsletter is not intended to constitute investment advice and is not designed to meet your personal financial situation. It is provided for information purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor or a group of investors. It should not be assumed that any investments in securities, companies, sectors or markets identified and described will be profitable. We strongly advise you to discuss your investment options with your financial advisor prior to making any investments, including whether any investment is suitable for your specific needs.
Although we obtain information contained in our newsletter from sources we believe to be reliable, we cannot guarantee its accuracy. The analysis provided in this newsletter is based on the prior trading day’s closing prices and may not reflect after-hours trading, earnings announcements, or other significant market events that occur outside regular trading hours. As such, any data or commentary may not fully capture the latest market movements or emerging factors. For the most current and comprehensive view, please consider additional sources or consult with a qualified financial professional.
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