Digest April 21st

Navigating Market Volatility Amid Tariff-Induced Turbulence

The stock market experienced significant upheaval following the announcement of sweeping tariffs by President Trump on April 2, 2025, leading to a sharp decline in major indices. Financial advisors are emphasizing the importance of adhering to long-term investment strategies and cautioning against reactionary decisions. Key strategies include proactive client communication, tax-loss harvesting, and reinforcing the benefits of diversification.​ Business Insider

SEC Leadership Change Signals Regulatory Shift

The U.S. Senate has confirmed Paul Atkins as the new Chair of the Securities and Exchange Commission (SEC). Atkins is expected to prioritize enforcement actions that directly address investor harm and may reduce focus on technical rule violations. This leadership change could lead to modifications in pending regulations affecting Registered Investment Advisors (RIAs), including those related to outsourcing and custody rules.​ Kitces

Corporate Earnings Guidance Withdrawals Amid Tariff Uncertainty

In response to the recent imposition of U.S. tariffs, several major companies across various sectors have withdrawn or withheld their financial guidance for 2025. Notable examples include Delta Air Lines and Frontier Group in the aerospace sector, Belluscura in healthcare, and Diageo in the consumer goods industry, which warned of a potential $200 million hit to operating profit. This trend reflects the widespread economic uncertainty triggered by evolving U.S. trade policies, emphasizing the need for financial advisors to closely monitor corporate earnings reports and adjust client portfolios accordingly.​ Reuters