đ„ Weekly Market Update: Tariffs Shock Caused A Choppy Week
We're excited to launch our new "Retiring with ETFs" mastery series, available free to all members! This comprehensive 8-week program delivers weekly episodes to help you master ETF investing for retirement. Don't miss outâonce the series concludes, this valuable content will become exclusive to paid subscribers.
Subscribe to our newsletter today to secure your free access!
Equity markets closed out another choppy week, ending on a down note after a fresh round of policy shocks and inflation data. Investors grappled with the surprise announcement of 100% tariffs on pharmaceutical imports, mixed economic signals, and a streak of profit-taking in tech names.
đ Whatâs Happening
Global markets were unsettled when President Trump announced 100% tariffs on branded pharmaceuticals effective October 1, plus hefty levies on heavy trucks and furniture. Pharma giants and truck-makers plunged as investors priced in higher costs and supply disruptions. In the U.S., the S&P 500 snapped its three-week winning streak, falling 0.3% on the week despite Fridayâs modest bounce after inflation prints matched forecasts.
â Why It Matters
The tariff shock threatens profit margins for healthcare and industrial companies, with broader implications for cost-of-living and corporate earnings. Meanwhile, Augustâs Personal Consumption Expenditures inflation gauge came in in line with expectations, keeping the Fed on a cautious path toward future rate cuts. With rate-cut odds now pushed farther into year-end, valuation pressures have surfaced, especially in rate-sensitive sectors.
đ Opportunity
Domestic Pharma Plays: Companies with U.S. manufacturing footprints may benefit from import tariffs as on-shore producers gain pricing power.
Rate-Sensitive Sectors: If inflation remains stable, utilities and real estate could outperform as bond yields plateau.
Energy & Commodities: Oil rallied nearly 5% on supply concerns, presenting selective entry points in energy stocks and commodities ETFs.
đ Bottom Line
Tariff headlines and a pause-for-breath in the marketâs rally highlight the fragility of current valuations. Investors should recalibrate their portfolios toward domestic producers, defensive sectors, and inflation-hedged assets while monitoring geopolitical developments and Fed guidance.
Sign up now and get our free REITsâ Numerical Ratings.
Disclaimer: This article constitutes the authorâs personal views and is for entertainment and educational purposes only. It is not to be construed as financial advice in any form. Please do your own research and seek advice from a qualified financial advisor. From time to time, I have positions in all or some of the mentioned stocks when publishing this article. This is a disclosure - not a recommendation to buy or sell stocks.