Markets

In recent weeks, I have written extensively about tariff-induced economic uncertainty. Many analysts continue to call for a recession, and this past week the World Bank projected the U.S. economy would grow just 1.4% in 2025—down from 2.8% last year.

To be fair, I think concerns about rising input costs, inflation, business investment, and consumer spending are all valid and should be monitored closely in the coming months. But as I write, the reality on the ground looks quite different from the gloomy outlook that tends to play out in financial media.

The U.S. economy has largely been resilient, with worst-case scenarios on tariffs avoided while economic fundamentals remain stable and strong. This combination has been driving the market rally, in my view.2

Read the entire article: Economy Keeps Chugging Along Despite Negative Headlines | Zacks Investment Management Blog

The Department of Labor has pulled Biden-era guidance urging 401(k) plan fiduciaries to use special caution when considering cryptocurrencies on plan menus, in a win for firms that already do so — chief among them Fidelity Investments.

Read the entire article: Financial Advisor IQ – DOL Rescinds Guidance on Crypto in 401(k)s in Win for Fidelity

Barriers for everyday retail investors to access alternative investments—until now primarily the playground of larger, well-heeled clientele—seem poised to crumble.

Newly installed Securities and Exchange Commission Chair Paul Atkins said last week it’s about time to roll back investment minimums and accreditation standards required to buy certain closed-end strategies with illiquid holdings.

Read the entire article: Financial Advisor IQ – Even Wall Street’s Top Cop Wants Alts Access for All

Earnings Expectations are Falling. That’s a Good Thing

The first four months of the year were dominated by trade and economic policy uncertainty. But let’s not forget what ultimately matters most for stocks: corporate earnings.I’ll dive into some details below, but the high-level takeaway is that U.S. corporations held up relatively well in the first quarter, while also scaling back expectations for the quarters ahead. And I see this latter point as good news for stocks.As I write, roughly half of S&P 500 companies have reported Q1 2025 earnings, and the results show +14.0% year-over-year earnings-per-share (EPS) growth on +4.0% higher revenues. Approximately 72.3% of companies beat their EPS estimates, which is pretty much in line with historical averages.

Read the entire article: Earnings Estimates Are Falling—And That’s Good | Zacks Investment Management Blog

Market declines come in all shapes and sizes, but they tend to follow similar patterns over time. Corrections are short, sharp declines between -10% and -20%, while bear markets are declines greater than 20% that fall into one of three categories

Structural – These bear markets are caused by severe dislocations, typically in financial markets, and are often associated with ‘bubbles.’ The 2008 Global Financial Crisis is an example of a structural bear, which often take several years to fully recover from.

Cyclical – These bear markets are more closely tied to the business cycle,

Read the entire article: Not All Selloffs Are the Same—Do You Know Which One We’re In? | Zacks Investment Management Blog

President Donald Trump’s moves to rip up the world’s military alliances are creating ways for investors to profit in S&P 500 stocks using ETFs.

Six of the eight largest defense and aerospace ETFs, including iShares U.S. Aerospace & Defense (ITA), Invesco Aerospace & Defense (PPA) and SPDR S&P Aerospace & Defense (XAR), are outperforming the S&P 500 this year, says an Investor’s Business Daily analysis of data from ETFdb and MarketSurge. And the entire group of eight ETFs is up an average of nearly 7%, while the S&P 500 is down 3% this year so far, says S&P Global Market Intelligence.

Read the entire article: S&P 500: Investors Find Ways To Profit From Trump’s Global Arms Race | Investor’s Business Daily

The Federal Reserve in a closely watched decision Wednesday held the line on benchmark interest rates though still indicated that reductions are likely later in the year.Faced with pressing concerns over the impact tariffs will have on a slowing economy, the rate-setting Federal Open Market Committee kept its key borrowing rate targeted in a range between 4.25%-4.5%

Read the entire article: Fed rate decision March 2025: Fed holds interest rates steady

With consumer confidence taking a notable dive in recent months and inflation still hovering above the Federal Reserve’s target rate, economic anxiety has become a defining feature of the early days of Trump’s second administration. While the president has begun implementing his promised tariffs against several countries, what’s more remarkable

Read the entire article: Trump’s tariff threats are proving a surprise tool against inflation

The U.S. stock market remains strong. Mega-cap technology companies have propelled index returns higher since last October, but the rally has also gained breadth recently. The S&P 500 equal-weighted index, for example, has also risen to a record high, and approximately 20% of S&P 500 stocks are trading at or near 52-week highs. That’s the highest percentage we’ve seen since May 2021.1In late February, I wrote a column about strong market returns making investors worried.

Read the entire article: Waiting for the Market to Drop Before Investing? Read This First. | Zacks Investment Management Blog