See a big stock rally ahead? Be patient, money manager says

From Yahoo Finance: 2025-05-25 17:16:00

The S&P 500 has rebounded 20% from its April low, but anxiety from the recent sell-off remains. President Trump’s tariff threats caused a 0.7% drop in the S&P 500 and declines in the Dow, Nasdaq Composite, and Nasdaq-100.

Tech stocks fell 1.3%, with Apple losing 3%. Analyst Jay Woods advises investors to remain patient due to upcoming earnings reports and market events.

The market is at a high point, with the Nasdaq showing signs of being overbought. The S&P 500 is near a new high, but concerns exist over trade talks and tariffs.

Nvidia faces challenges despite strong earnings. The stock dropped as much as 18% due to competition from Chinese AI company DeepSeek. Woods emphasizes the importance of strength in tech stocks like Amazon and Tesla.

Trade talks are crucial for market stability. Woods anticipates progress by the end of the year but stresses the need for reduced tariff rates to prevent price hikes.

The Federal Reserve’s interest rate is steady, but Woods predicts a possible rate cut in June or July if economic data remains stable. Inflation and trade talks will influence the decision.

As the market remains uncertain, patience is key for investors. Woods advises caution in tech investments and emphasizes the impact of trade talks on market trends.

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