Market Pulse with Dan Sheehan
Dan Sheehan, MBA, MS
Financial Advisor | Markets Strategist | PhD Candidate (Business-Finance) Former D1 Collegiate Golfer | Daily Newsletter: Market Pulse with Dan Sheehan ?? Contact: [email protected]
Good morning investors,
Global markets are recoiling as the latest round of tariffs from President Trump sends shockwaves through equities, currencies, and commodities. With steep levies imposed on Canada, Mexico, and China, concerns over supply chain disruptions, rising costs, and retaliatory measures have triggered a broad-based risk-off move. While the immediate impact is undeniable, it is important to assess whether selective opportunities may emerge from the volatility, particularly in sectors poised for structural resilience.
Market Framework
Futures indicate a sharply lower open, with the Dow down 1.5%, the S&P 500 off 1.7%, and the Nasdaq falling nearly 2%. Small caps, often more sensitive to trade disruptions, are bearing the brunt of the move, with Russell 2000 futures shedding 2.3%. Volatility is spiking, with the VIX breaching 21. Meanwhile, European equities have retreated from record levels, and Japan’s Nikkei is suffering its worst session in four months, down over 2%.
In forex markets, the U.S. dollar is surging, exacerbating pressure on the Canadian dollar and Mexican peso, both of which have tumbled to multi-year lows. China’s yuan has also slumped to a record trough in offshore trading. Gold, initially weaker overnight, has reversed course on safe-haven demand, trading near record highs. Oil prices have climbed, though concerns over economic damage from escalating trade tensions are capping gains.
Technology and AI Evolution
The recent tariff escalation is weighing on the semiconductor space, with leading chipmakers facing declines. AMD and Nvidia have seen notable weakness in recent sessions, though the long-term structural drivers in AI and computing infrastructure remain intact. Market participants are assessing how trade restrictions could impact supply chains and future demand cycles, particularly for companies reliant on international production and exports.
Elsewhere, Google faces another legal battle as it attempts to overturn a U.S. jury verdict that could force a major revamp of its app store. Regulatory challenges persist in the technology sector, and this case will be closely watched for broader implications regarding platform-based ecosystems and digital commerce.
Corporate Framework
Tariffs are hitting the auto sector hard, with General Motors down over 6% and Ford lower by 4% pre-market, reflecting concerns over supply chain disruptions and higher costs. Auto suppliers such as Aptiv and Cummins are also under pressure. The broader industrial space is seeing select names like Nucor and Steel Dynamics catching a bid, benefiting from protectionist policies boosting domestic steel.
Meanwhile, Palantir reports earnings after the bell, with expectations for 27.8% revenue growth. The government contracts division continues to expand, and commercial adoption of AI platforms is driving momentum. Investors will be focused on execution, particularly within AI-driven initiatives, as the company works to strengthen its enterprise relationships.
Federal Reserve and Economic Outlook
Trade policy turmoil aside, markets are preparing for a pivotal week in economic data. Wednesday’s ISM Manufacturing PMI and Friday’s nonfarm payrolls report will be crucial for gauging economic resilience. The labor market remains a key indicator, and with expectations of 175,000 jobs added, any deviation could shape near-term Federal Reserve policy sentiment.
On the inflation front, tariffs introduce a new layer of complexity. While supply chain disruptions could spark cost-push inflation, the Fed may look through short-term volatility in pricing pressures, preferring to focus on core trends. A measured approach—rather than aggressive cuts—may remain the more constructive path for sustainable market strength.
Analyst Recommendations
Strategic Outlook
Market volatility has increased as investors digest the implications of new tariffs and the potential for retaliatory trade measures. While near-term headwinds are evident, fundamental strength in select industries could provide resilience. Semiconductors, cloud computing, and AI infrastructure remain areas of long-term interest, though careful risk management is warranted given the shifting macroeconomic landscape.
The upcoming earnings season and key economic data releases will be crucial in determining near-term sentiment. Palantir’s earnings report, along with guidance from major technology and industrial companies, will provide additional clarity on business conditions and corporate confidence.
As always, feel free to reach out with questions about positioning for these evolving market dynamics.
Dan Sheehan
This newsletter is for informational purposes only and should not be considered as investment advice. Please consult with your financial advisor about your specific situation.