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NEWS
Double The Tariffs, Double The Fun

The S&P 500 officially joined the Nasdaq 100 in correction territory, at least on an intraday basis, with Trump’s threat to double certain tariffs weighing on most sectors. Traders and investors are still looking for clearer signs of a bottom before jumping in, with neither earnings nor economic data providing a catalyst. 👀 

Today's issue covers confidence sinking across the board, more airline carnage, a Chinese electric vehicle reversal, and more from a busy day on Wall Street. 📰

Here’s the S&P 500 heatmap. 0 of 11 sectors closed green, with technology (-0.41%) leading and industrials (-1.54%) lagging.

And here are the closing prices: 

STOCKS
Bears Broaden Their Attack 🐻 

The sectors leading to the downside today were not tech but rather more cyclical areas tied to the U.S. consumer and overall economic activity. The uncertainty in the economy is causing consumers and businesses alike to slow down significantly as they await more clarity on the future of policy (and the economy). 🛑 

Notably, the NFIB Small Business Optimism Survey showed that the percentage of small businesses that believe now is a good time to expand saw its largest one-month decline since April 2020 (COVID). H/T Joe Weisenthal for the stat.

But an even easier gauge for how Wall Street views the U.S. consumer right now is how the retail sector ETF $XRT ( ▼ 2.36% ) is trading. As we can see below, the ETF broke out to new 52-week highs in the weeks following Trump’s election but have reversed sharply as uncertainty took hold. Today, prices hit fresh lows, marking one of their fastest moves from 52-week highs to lows in recent history. 🤯 

Whether it’s surveys, stock prices, company business updates, or any other metric you want to use, it’s clear that uncertainty is having a material impact on how consumers and businesses spend. The economy was already slowing as it is, and people will not accelerate when they can’t see what’s in front of them. ⚠️ 

That doesn’t mean stocks can’t have a short-term relief rally based on sentiment and other technical factors. Many traders believe we’ll near that point soon. But if the stock market is going to mount a sustainable comeback in 2025, this administration needs to figure out a policy stance and approach to growing the economy quickly. Or at least communicate effectively. Otherwise, we can expect more of the same from markets.

Our next story expands on what the consumer is feeling in the current environment, citing the airline industry as the latest victim of economic uncertainty and how it’s driving Wall Street and Main Street’s behavior. 👇️ 

SPONSORED
$OSTX (OS Therapies) Announces Successful Phase 2b in Osteosarcoma Trial

The OS Therapies (NYSE: $OSTX) lead candidate, OST-HER2, is a groundbreaking immunotherapy designed to train the immune system to target cancer cells that produce HER2. OST-HER2 completed a Phase 2b clinical trial preventing lung metastases in osteosarcoma, the most common form of bone cancer.

It has earned rare pediatric disease designation (RPDD) from US FDA and fast-track & orphan drug designations from the US FDA and EMA. OS Therapies may earn a priority review voucher based on the RPDD —potentially worth $150M—if the FDA ultimately grants approval based on these Phase 2b results. The Company plans to submit a Biologics License Application (BLA) by late 2025 and aims to achieve final approval––and a potential PRV––by year-end 2025. A planned Phase 2/3 trial using OST-HER2 for breast cancer and other HER2-positive tumors is set for 2026.

OS Therapies (NYSE: $OSTX) is a B2i Digital Featured Company.

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.