The Trump Administration, frustrated by a huge trade deficit, has kicked off a trade war with the goals of reducing the imbalance. The reaction in the financial markets suggests investors are skeptical. Tariffs are not new. The U.S. economy is already propped up by numerous tariffs that over the years have averaged almost 4% on all goods. Trade wars often start with a narrow focus, but then broaden as partners retaliate. The puts and takes are difficult to model, but we do have several key takeaways and consumers, companies, and investors can count on several outcomes. Let's first look at the impact on imported goods. Cases in point are steel and aluminum. Domestic metals producers will be in an improved competitive position because imported steel and aluminum prices will be higher. But farther up the value chain, the outcomes may be less positive as domestic companies that use imported steel or aluminum s face higher costs. The exporters face trouble right away: the retaliatory tariffs immediately place their products at a pricing disadvantage. Exporters thus face lower sales or lower margins. Of course, given the fact that numerous tariffs have been in place for years, U.S. corporations have experience managing these challenges. Over the long run, if tariffs and trade policies better protect corporate intellectual property, then domestic companies in industries such as IT and Pharmaceutical & Biotech may benefit. That said, we think it is worth pointing out that the U.S. economy is among the strongest and most diversified in the world. And U.S. consumers have benefitted for years from innovative imports such as automobiles and lower-priced products such as apparel and electronics. With the economy humming and unemployment at 4%, we think this is an odd time to fiddle with an economic principle as bedrock as free trade.

Founded in 1940 and based in Charlotte, North Carolina, Nucor Corp. is a manufacturer of steel and steel products and is North America's largest steel recycler. The company's main operating units are Steel Mills and Steel Products. Nucor has about 32,000 employees. The shares are a component of the S&P 500.

March has come 'in like a lion.' Let's see if it goes 'out like a lamb.' The major indices saw downside follow-through Tuesday morning following Monday's wreckage, but bounced hard after hitting key support levels. The S&P 500 (SPX) was down 2%, clawed its way back to positive territory, but then plummeted in the last 35 minutes of the session, finishing off 1.2%. The Nasdaq and Nasdaq 100 were the stars of the day, declining only 0.4%, while the S&P 100 dipped 1.1%. The small-cap and mid-cap indices were the weakest again, down 1.5% to 1.6%. The 5,773 region for the SPX is key as there is a cluster of support there. It represents chart support from the prior low in January, the rising 200-day average, and a 38.2% retracement of the rally since August 2024. Since the SPX started its descent from an all-time closing high on February 19, the index has given back 6% in nine days. The next important zone of support is between 5,630 to 5,650 -- which is the last major breakout area, the location of the 50-week, and a 50% retracement of the rally since August. The QQQ has tanked 8% from its all-time high nine days ago. Support in the 490-500 area was provided by the 200-day average, the former breakout region, and a 38.2% give-back of the rally since August. The Nasdaq has slid 9% in just nine days, with the last closing all-time high on December 16. The index bounced off a 50% retracement of the rally, the prior breakout area, and the 50-week exponential moving average, and has slightly undercut its 200-day.

Founded in 1940 and based in Charlotte, North Carolina, Nucor Corp. is a manufacturer of steel and steel products and is North America's largest steel recycler. The company's main operating units are Steel Mills and Steel Products. Nucor has about 32,000 employees. The shares are a component of the S&P 500.