Let's get to the big story breakdown.
A week of record highs this week, not just for the Nasdaq and S&P 500, but also for Bitcoin and Nvidia.
For now, tariff uncertainty back in the spotlight as all eyes are on these record highs.
Earlier this week, Nvidia CEO Jenson Wong announced he is set to meet with Trump at the White House.
The meeting follows a historic milestone for Nvidia, the first company to close above a $4 trillion market cap.
Well joining me as we wrap up the week is Peter Tuchman, senior floor trader.
Trade.
So Peter, happy Friday.
What a week it's been.
They're panicking.
That's what I, I know.
Well, a lot of interesting terms that are not officially in the dictionary.
So first and foremost, what do you make of all this action?
You know what I think it's fascinating, you know, the fact that the market is trading at record highs with all the look, our attention was diverted for a little while with the war in the Middle East, right, even though we know the thing, the biggest market mover over the last 3 months has been the tariffs, right?
It took us down to the lows of April once the president told us to buy.
Market back we were able to get back to you know really record highs once again and even with all this pending and looming over the last number of days because we now we are in Q3, we are in the beginning.
I think there's a lot of money on the sidelines.
People are playing catch up, right, and we've got earnings season coming up.
I think what you just described in your opening session, it's going to be the first time we're seeing since last quarter where we're actually going to be able to give some guidance, although look, you described in the opening segment that Tariffs are now going to be a big thing again, right?
Obviously he's coming out of the gate with a little more of that bully bullying feeling to him, and he is using quotes, I guess when people are coining him as the taco trade, he's coming back at everybody with a panicking, and I love it, you know, look, the goalposts are even, right?
The landscape, everybody gets to play in the same playground here, so the action is extraordinary.
The market breath is solid, you know.
We did hit all-time record highs across the board yesterday, which is amazing.
And so and now this pullback is surely a function of the fact that Mr.
Trump is re-engaging the tariff thing, you know, laying it out.
If you think back, February 19th was the first day that the market started. to sell off when he said I'm imposing a 25% tariff on Canada and Mexico.
Once again, it's been a little while since he did that, but today 35% on Canada and Mexico and you know unless they do this and that.
So we're going to see a little bit of push and pull, but Well, Peter, you know, yeah, and I think a lot of words to add to the dictionary and also a lot of acronyms here whether we're talking about FOMO or MOMO, and that is the momentum trade.
So I do want to take a look at Nvidia especially because earlier this year we had that concern about Deepee and also the implications of trading partners, but we know Nvidia breaking that $4 trillion mark.
What does this mean going forward and is it all based on AI?
Well, no, I mean, I think there's a massive industrial revolution within the AI space.
So yes, it is based on AI, but it's also there's the 3rd and 4th, 2nd and 3rd derivative of that space.
There are a lot of other smaller stocks that you're seeing small cap, mid cap stocks in the AI space that are going to play where there is opportunity, you know, a lot of people are going to look at Nvidia.
If you look at Nvidia from February 2023, it was a $108 stock.
February 2024, it was a $795.
It then went in the second quarter.
It went up to 1100 split 10 for 1 $50 billion buyback.
And besides the fact that we had the deep seek and then the president outlawed Nvidia from selling certain old chips, the stock is literally the leading.
It's best to breed, right?
Jensen Wang is obviously the best in the AI space, you know, he knows how to position himself.
When he doesn't get what he wants, he shows up at the White House.
He ends up going to Saudi Arabia.
So you know that's what I like.
There's a certain proactiveness that's super important, and it's being reflected in the stock in people's perceptions of it. $4 trillion is extraordinary, you know, I mean, while I think you're seeing a lot of stocks that are the old flavors of the moment like Apple, which were best of breed for a while, they're pulling back because people are not being as proactive.
Jensen Wang is stepping up.
He's doing what needs to be done, and he's pivoted too, you know, there have been bumps in the. and sort of pebbles in the shoe for video, but at the end of the day they keep forging on and they're doing the right thing.
So the price action is extraordinary.
Yeah, and Peter, another record high for Bitcoin earlier this morning, clearing the 118,000 level because yesterday while I was keeping a close eye on that crypto major, we saw it break above 113 and overnight we saw 116 this morning above 118.
So where do we go from here?
Well, you mentioned the momentum trade, you know.
I'm I'm a trader.
I teach trading, right?
So we have Wall Street Global Trading Academy, one of our biggest trades is the momentum trade.
That is basically when the market is sort of flatlining for a certain amount of time and it either breaks to the upside or breaks to the downside.
That's the momentum trade.
That's basically everyone waiting around where the next move is going to be.
And look, you're seeing it with Bitcoin, you're seeing it with, with, with, with Nvidia too, you know, people are wondering, do I pay the highs?
But if today's highs are tomorrow's lows.
Then it would have been a good trade.
So you know yesterday was an extraordinary day.
You had Nasdaq, you had S&P, and you had the Dow hitting intraday record highs and closing record highs, and Bitcoin, right?
So if anyone ever thought Bitcoin was a hedge to the market, they're wrong.
It's been trading with the market, and I think you're seeing a lot of momentum there.
People are looking for immediate return on investments.
They're seeing it in the market.
They're seeing it in crypto, and they're seeing it surely in the tech sector.
Yeah, and Peter, it is Friday, but of course we have a big week ahead of us next week because we get key economic data on the US, whether we're talking about inflation or retail sales figures.
But in addition to that, it is the official kickoff to earnings season.
So what are you paying attention to as we gear up for the upcoming week?
So look, the last earnings season, one of the most problematic things were that you had a GM, United Airlines board or the inability for the companies to show guidance.
It was so much uncertainty around the tariff question that they didn't know what the cost of goods sold were.
They were not able to do that.
Even Jade me Dimond came out and said, you know, we are, we are in a quandary here.
We don't know what to do.
The last time that happened was during COVID, right?
Back in November 2021 was the first time and surely in 50 years where the CEO of the largest bank in the world, came across the tape and said, I am not able to give guidance for this company going forward because of All the certainty around COVID then he did it now around the around the tariffs.
So you know what I'm watching tariffs.
I mean that's obviously starting to unfold and evolve once again.
We're going to see where that goes.
Is that going to put a lot of stress on this market going forward next week?
A lot of economic data.
The Fed is, you know, the Fed is the next thing that we're going to have to keep our eyes on.
Are we, you mentioned just this morning on the opening segment that you were able that that company what it was, you were able.
Give guidance, right?
So one of the reasons we are where we are in this market right now is that earnings were good.
Even without guidance.
We've had some strong growth and so if that stays solid and we get a little less uncertainty around the tariffs, then we're going to be able to give guidance and I think then you know then we should be able to get higher from here.
OK, Peter, as always, thank you so much for joining me as we wrap up the week and I'll see you back bright and early on Monday.
Have a great weekend.
