The Money Wise Guys kick off this week’s podcast with a market recap, highlighting a strong performance across major indexes. The Dow rose 243 points (0.5%), the S&P 500 gained 89 points (1.5%), and the NASDAQ jumped 503 points (2.6%), with all three maintaining solid year-to-date gains. The discussion touches on technicals, noting that the S&P 500 has been stuck in a sideways trading range since late January. Key market drivers remain interest rate expectations and ongoing tariff negotiations. While initial tariff announcements caused sharp reactions, market sensitivity has eased as investors adjust to the administration’s strategy of using tariffs as leverage in trade deals. Meanwhile, the Federal Reserve reiterated its data-driven approach to monetary policy, though speculation continues about whether persistent inflation could slow down expected rate cuts.

Beyond market movements, the guys focus on tariffs and their broader economic impact. The administration’s latest round of reciprocal tariffs, particularly on the Eurozone and India, reignited debates about their inflationary effects. While some argue tariffs drive up prices, the guys pointed out that competition and supply chain adjustments help mitigate long-term inflation risks. With the administration pushing aggressive policy changes in its first 100 days, heightened volatility is expected throughout 2025. The key takeaway? Investors should stay informed, remain flexible, and prepare for continued market fluctuations as new economic policies take shape.

Tariff tantrums—sharp market reactions to new trade policies—have become a recurring theme, though their impact appears to be fading. Initially, every new tariff announcement triggered volatility, but investors seem to be adjusting to the administration’s aggressive trade stance. While tariffs can raise costs on imported goods and contribute to inflation, the market is learning to anticipate these moves rather than panic. The back-and-forth nature of tariff negotiations, where policies are announced, adjusted, or delayed, has created uncertainty, but also opportunities for traders who navigate the swings. As businesses adapt supply chains and the administration continues its tit-for-tat approach, the market’s sensitivity to tariff news may keep diminishing—unless a major escalation reignites the tantrums.

In the second hour, the Money Wise guys explore RIA vs. Broker. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.