Nasdaq(US:NDAQ) Benzingaยท2025-03-27 07:21Market Overview - The exchange-traded funds tracking the S&P 500 index (SPY) and Nasdaq 100 (QQQ) are trading below their long-term averages amid ongoing market volatility, influenced by President Trump's tariff announcements [1][2]. SPY Analysis - As of Wednesday's close, SPY's price was below its 20, 50, and 200-day simple moving averages, indicating a bearish trend [2]. - SPY experienced pressure for 10 trading days after slipping below its 200-day average on March 10, but managed to recover briefly before declining again [2]. - The relative strength index (RSI) for SPY was neutral at 44.86, while the MACD line was negative at -6.37, though it showed signs of approaching the signal line with a positive histogram of 1.78, suggesting potential bullish momentum within a bearish trend [3]. QQQ Analysis - QQQ's price was also below its 20, 50, and 200-day simple moving averages as of Wednesday's close, marking 16 sessions below its long-term average since March 5 [4]. - The RSI for QQQ was neutral at 44.28, and the MACD indicator was negative at -7.58, with a positive histogram value of 2.13, indicating a similar bullish sign within a bearish trend [5]. Tariff Impact - President Trump announced a 25% tariff on auto imports, which he claims will spur growth, despite the expected economic costs associated with tariffs [6][8]. - Scott Wren, a senior global market strategist at Wells Fargo, noted that while tariffs will have economic costs, their negative effects can be mitigated through company and consumer actions, such as diversifying supply chains and adapting consumer behavior [7][8]. - Companies have already begun raising prices due to tariff impacts, but often less than the full tariff rate, indicating that high corporate profit margins may allow for some absorption of price increases [7]. Price Action - On Wednesday, SPY declined by 1.19% to $568.59, while QQQ dropped by 1.84% to $484.38 [8].