Media Influence on Market Sentiment: Navigating the Doocy Effect in a Tariff-Turned Market

As President Trump's trade policies roil financial markets, the role of media in shaping investor sentiment has never been more critical. Steve Doocy, the influential co-host of Fox & Friends, has emerged as a pivotal voice in translating policy shifts into digestible narratives for retail investors. His recent commentary on the cascading effects of tariffs—from retirement savings to small businesses—offers a master class in how media cycles can amplify market volatility and create opportunities for strategic investors.

The Doocy Effect: When Tariffs and TV Screens Collide

Doocy's June 2025 reporting has centered on the human toll of trade disputes. Take the case of Michelle, a widow who lost 18% of her life savings as stocks plunged in late spring. Her story, highlighted by Doocy, underscores how individual investors often bear the brunt of macroeconomic shifts. Meanwhile, a small business owner's tariff bill ballooning from $26,000 to $346,000 overnight—captured in a New York Post exposé—has become a rallying cry for critics of protectionist policies. These anecdotes, amplified by Doocy's platform, have fueled skepticism about the administration's “win-win” rhetoric.

The data aligns with the narrative. reveals a nearly 20% drop in equities in late April—a sell-off that only stabilized after Trump paused tariffs on April 9. Yet the bond market's reaction was even more dramatic. shows yields spiking by 60 basis points in the same period, as investors fled equities for “safe” bonds, further tightening credit conditions.

Sector Vulnerabilities and Sentiment-Driven Opportunities

Doocy's focus on tariffs has created clear winners and losers. Industries reliant on global supply chains—automotive, consumer discretionary, and industrials—have faced steep headwinds. For example, illustrate a 12% decline on average, as tariffs raised input costs and delayed projects. Conversely, sectors insulated from trade disputes, such as utilities and healthcare, have outperformed.

Yet the bond market's instability presents its own set of risks. Doocy's warnings about rising interest rates—driven by tariff-induced bond sell-offs—hint at a looming challenge for borrowers. Mortgage rates, tied to 10-year Treasuries, have already climbed to 5.2%, squeezing homebuyers. Investors might consider shorting bond ETFs like TLT or hedging portfolios with inverse interest rate ETFs.

Lessons from the Media Cycle: Timing the Narrative Shift

History shows that market sentiment often lags behind policy changes. When Trump paused tariffs in April, equities rebounded sharply—yet the gains were short-lived as traders questioned the sustainability of the truce. Doocy's June 2025 transition to a coast-to-coast reporting format may amplify his influence, allowing him to frame stories from key economic hubs like Florida and Texas. For investors, this underscores the importance of monitoring media cycles:

1. Track Sentiment Triggers: Doocy's coverage of trade disputes correlates with spikes in Google searches for terms like “tariffs and stocks.” Investors can use sentiment analysis tools (e.g., MarketPsych Indices) to gauge when fear or optimism peaks.
2. Sector Rotation Strategies: Rotate into defensive sectors (utilities, REITs) during periods of high media-driven volatility and pivot to cyclical sectors (materials, industrials) when trade tensions ease.
3. Hedge Against Interest Rate Risk: With bond markets signaling potential turbulence, consider Treasury inverse bonds (TBF) or high-quality corporate debt with shorter durations.

Final Take: Riding the Media Wave

Steve Doocy's reporting serves as a reminder that markets are not just driven by data—they're shaped by the stories that frame that data. As tariffs remain a political lightning rod, investors who recognize the interplay between media narratives and asset prices can position themselves to capitalize on shifts in sentiment. The key? Stay ahead of the cycle.

Jeanna Smialek
June 19, 2025