Finance
‘I find it impossible to catch my bearings’: Yahoo Finance community reacts to Trump tariff stock market plunge
Shocked investors are searching for a light at the end of the tunnel after being hit by Trump tariffs.
Indeed a glimmer of any kind is hard to find at the moment.
Markets have shed an astounding $5.4 trillion in value in the two days since President Trump revealed big-time tariffs on major countries last Wednesday. The S&P 500 (^GSPC) is now at its lowest level in 11 months, with pros saying the carnage may not yet be over.
Futures on the S&P 500 (ES=F), Nadaq 100 (NQ=F), and Dow Jones Industrial Average (YM=F) are down 2.8%, 3%, and 2.5%, respectively.
Wall Street has been slashing its S&P 500 price targets for 2025, dialing up recession odds, and pontificating worst-case scenarios for the bottom lines of household name companies, from Apple (AAPL) to Amazon (AMZN) to Walmart (WMT).
“What I’ve been saying in my meetings lately, even before the Rose Garden [ceremony last week on tariffs], is that it’s not clear to me where [for sectors and industries] new value has been unlocked,” RBC Capital Markets strategist Lori Calvasina told Yahoo Finance. “If you are looking at individual stocks that have any of these [tariff] issues, I suspect it’s very hard to make assumptions about earnings that you can have confidence in.”
Read more: The latest news and updates on Trump’s tariffs
So with this as a backdrop, I put a straightforward question to the Yahoo Finance retail investor community in my Sunday Morning Brief newsletter: What stocks are you buying amid one of the biggest routs in recent memory, if any?
“You’re right, it’s messy right now and difficult to decide what to do,” one investor remarked.
Below are several of the best responses I received.
I would still love to hear from you as you navigate the markers this week. Drop me a line @BrianSozzi on X or directly via email brian.sozzi@yahoofinance.com.
“So what am I buying what am I selling? Buying, not much. Like you I find it is impossible to get my bearings on individual shares since tech began to waver last August.
“You’re right it’s messy right now and difficult to decide what to do. I have taken lumps and sold positions that I was keeping to see if they went up over time, but time ran out Thursday … they went down too much, so my marginal investments went kaput and I sold for losses ranging from 8% to 25%. Gulp.
“I have retained my IT investments which earlier this year I had moved to ETFs due to individual position volatility, but I’am facing a huge loss with Dell, (DELL) my chosen darling and only remaining tech stock, in what now looks like a horrid decison. It is a loss that I have yet to materialize but it rankles me. I may average down.
LONDON -Financial firms in Britain will be able to test artificial intelligence tools later this year in a regulatory “sandbox” launched on Monday by the country’s financial watchdog, part of a broader government strategy to support innovation and economic growth.
The Financial Conduct Authority (FCA) has partnered with U.S. chipmaker Nvidia to provide access to advanced computing power and bespoke AI software through what it calls a “Supercharged Sandbox.”
A sandbox refers to a controlled environment where companies can test new ideas such as products, services or technologies.
The programme is intended to help firms in the early stages of exploring AI, offering access to technical expertise, better datasets and regulatory support, the FCA said. It is open to all financial services companies experimenting with AI.
“This collaboration will help those that want to test AI ideas but who lack the capabilities to do so,” Jessica Rusu, the FCA’s chief data, information and intelligence officer, said. “We’ll help firms harness AI to benefit our markets and consumers, while supporting economic growth.”
Finance minister Rachel Reeves has urged Britain’s regulators to remove barriers to economic growth, describing it as an “absolute top priority” for the government.
In April, she said she was pleased with how the FCA and the Prudential Regulation Authority, part of the Bank of England, were responding to her call to cut red tape.
Nvidia said the initiative would allow firms to explore AI-powered innovations in a secure environment, using its accelerated computing platform.
“AI is fundamentally reshaping the financial sector,” said Jochen Papenbrock, EMEA head of financial technology at Nvidia, citing improvements in data analysis, automation and risk management.
He added that the sandbox will provide firms with a “secure environment to explore AI innovations using Nvidia’s full-stack accelerated computing platform, supporting industry-wide growth and efficiency.”
The testing is set to begin in October.
(Reporting by Sam Tabahriti; Editing by David Holmes)
Finance
Financial Experts: These Are the Top Mistakes Americans Make When Investing in the Stock Market
There’s no reason you should lose money investing in stocks, considering that the markets always move higher over time. This decade alone, the S&P 500 has risen by about 88%.
Just investing in an S&P 500 fund could have helped any investor generate solid profits. But a lot of investors still take a beating on Wall Street because they make common mistakes that can be easily avoided.
Advertisement: High Yield Savings Offers
Powered by Money.com – Yahoo may earn commission from the links above.
Read Next: I’m a Financial Advisor: 4 Investing Rules My Millionaire Clients Never Break
Check Out: These Cars May Seem Expensive, but They Rarely Need Repairs
Here are the top mistakes Americans make when investing in the stock market, according to three financial experts contacted by GOBankingRates.
Also see the No. 1 mistake Americans make with their Roth IRAs, according to experts.
Misjudging risk was cited by Christine Chase, vice president and financial consultant at Fidelity Investments. More precisely, she cited a tendency to misjudge risk tolerance, which means too many investors either take on too much risk or are too conservative. Both extremes can negatively impact your return.
“Excessive risk can lead to emotional decision-making and panic-selling during market downturns, while being too conservative may prevent your portfolio from growing enough to meet long-term goals or keep pace with inflation,” Chase said.
To help manage risk and navigate the market’s ups and downs, she recommended maintaining a well-diversified portfolio and working with a financial professional.
Be Aware: Suze Orman: 3 Biggest Mistakes You Can Make as an Investor
Anthony Grosso, a New York-based financial strategist and mortgage loan originator, told GOBankingRates the biggest mistake he sees people make is “blindly trusting the news” when investing. He learned this lesson himself as a younger investor.
“What I learned fast is that by the time something makes [it to the news], the market has already reacted,” Grosso said. “The news isn’t meant to educate — it’s there to get clicks and views. They will spin a story, beat a topic to death until you’re panicked or euphoric, and both of those times are when you make emotional decisions which are the worst ones.”
If you do watch the news, he recommended doing so with a healthy dose of skepticism.
“Try to get reports of the actual data — not someone’s opinion on the data,” Grosso said. “Learn to make your own opinions and it will give you the confidence to have a plan and stick with it.”
Not cutting losses is a mistake that happens a lot, according to Edward Corona, a Florida-based trader and publisher of The Options Oracle Newsletter. In fact, it happened to him early in his career.
California asks court for restraining order to block Guard, Marine deployments in L.A.
Salton Sea is emitting foul-smelling hydrogen sulfide gas, triggering health concerns
City Section football notebook: James Boyd is new coach at L.A. Jordan
Meta plans to invest $15bn in Scale AI in bid to catch up to rivals
Macron says France will ban social media for under-15s if EU does not
-
Politics1 week agoMichelle Obama facing backlash over claim about women's reproductive health
-
Finance1 week agoHere's what will boost your feeling of financial well-being the most, researchers say
-
West3 days agoBattle over Space Command HQ location heats up as lawmakers press new Air Force secretary
-
Technology1 week agoWhy do SpaceX rockets keep exploding?
-
World1 week agoTwo killed in Russian attacks on Ukraine before possible talks in Turkiye
-
World1 week agoNcuti Gatwa Bids Doctor Who Farewell as Finale Ends With a Most Surprising Twist — Grade It!
-
News1 week agoTrump administration continues to target international students. What to know and what could be next.
-
Vermont1 week agoMMU’s Bea Molson returns to glory, CVU girls claim doubles at tennis championships