The global macro picture is shifting. U.S. equities saw a mixed performance as investors grappled with new trade policy proposals and ongoing economic concerns. The QQQ led the charge, gaining 0.88%, while the SPY added 0.72%. The DIA showed more modest gains, up 0.34%, and the IWM was unchanged at 0.00%.
President Trump's announcement of a potential 15% global tariff has introduced a new layer of uncertainty into international trade relations. This policy shift, up from a previously suggested 10%, could impact multinational corporations and global supply chains, potentially increasing costs for consumers. Meanwhile, domestic economic anxieties persist, highlighted by concerns over Social Security's 2.8% Cost of Living Adjustment (COLA), which some analysts deem insufficient to offset rising living expenses for retirees. The increase is only marginally higher than the previous 2.5% COLA.
Adding to the economic landscape, concerns about property taxes are also surfacing, particularly in states like California. High property taxes can significantly impact homeowners' finances, even in areas with seemingly moderate effective tax rates. Separately, legendary investor Ray Dalio has expressed reservations about the U.S. economy, reducing holdings in major tech stocks, which raises questions about the future of artificial intelligence and increased capital spending.
Macro regimes don't change overnight—but when they do, it matters.