By Nigel Green

Wall Street loves a bit of drama, and Thursday delivered in spades.

Investors were still digesting tech earnings when Trump shook things up with a 25% tariff announcement on Canadian and Mexican imports. Markets wobbled, and the reaction speaks volumes about what lies ahead in 2025.

Let’s start with the numbers. The S&P 500 eked out a 0.1% gain, while the Nasdaq and Dow Jones barely held their ground.

Meta and Tesla flexed with 2% and 3% gains, respectively, while Microsoft tripped over its own feet, sliding 6% on a weak revenue forecast. And just as Wall Street was trying to make sense of it all, concerns over trade and corporate outlooks took centre stage.

So, what should investors take from this chaotic snapshot?

First, tech still rules, but selectively. Meta proved strong results still get rewarded, while Tesla’s ability to shake off weak numbers shows investors believe in its long-term story. Microsoft, on the other hand, reminded everyone that even the mighty aren’t immune to a rough forecast. This is a stock picker’s market—gone are the days when throwing cash at every megacap tech stock guaranteed easy returns.

Second, tariffs are back, and they’ll reshape the investment landscape. Trump’s announcement wasn’t just a headline grab—it’s the opening shot in what could be a turbulent year for global trade.

Companies relying on cross-border supply chains, especially in manufacturing and retail, now face higher costs. Margins will get squeezed, and stock prices will feel the pressure. But not all industries will suffer. Domestic producers, particularly in steel, energy, and industrials, could stage a resurgence as investors bet on protectionist policies favoring homegrown businesses. Watch for rotation into these sectors.

Beyond tariffs, companies are bracing for a year where pricing power will be everything. Earnings reports are making it clear: businesses that can pass higher costs to consumers will thrive, while those struggling to do so will get punished. Consumer sentiment and corporate guidance are now as critical as raw earnings data. Investors need to focus on companies that are not just delivering numbers but also issuing confident forecasts.

Tech will remain a battleground, but leadership is shifting. AI and cloud leaders are separating from the pack, while companies overly dependent on advertising or cyclical consumer demand face a tougher road. The market no longer rewards growth at any cost—profitability, efficiency, and resilience are back in fashion. Firms that can demonstrate sustainable margins and operational discipline will stand out.

Meanwhile, market volatility is here to stay. Interest rate expectations, trade policy shifts, and corporate earnings guidance are driving rapid sentiment swings. That means investors must stay nimble and avoid complacency. The winners will be those who actively manage risk and reposition portfolios ahead of emerging trends.

So, what’s next? The rest of the year is shaping up to be a rollercoaster, but some trends are clear. Tech will continue to deliver opportunities, but stock selection matters more than ever. If tariffs escalate, manufacturing and industrials will stage a comeback, while multinational retailers will struggle. Defensive sectors, like healthcare and consumer staples, could benefit as investors seek stability.

For investors, the message is clear: complacency investing won’t cut it this year. Adapting to shifting conditions will require strategy. Look for quality companies with pricing power, stay alert to trade policy shifts.

The market is handing out lessons. Smart investors will be taking notes and seeking advice.

(Author is deVere Group CEO and Founder)

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