“We’re now looking at markets pricing in about a 90% probability of a cut in September.” – 03:27
Michael Reinking, Senior Market Strategist at the NYSE, joins Remy Blaire to discuss the latest developments in the U.S. economy, particularly focusing on the implications of recent labor market data and the rising expectations for Federal Reserve rate cuts. The pair begin by breaking down the latest U.S. jobs report, which revealed that nonfarm payrolls came in below estimates, with a notable increase in unemployment.
Shifting focus to the trading floor, a remarkable week for mergers and acquisitions (M&A), marking the highest volume of deals since 2021. Notable transactions included Union Pacific’s $71.5 billion acquisition of Norfolk Southern and Palo Alto Networks’ $25 billion deal for CyberArk. The successful IPO of software company Figma, which saw its share prices more than triple, adds to the optimism surrounding the market, indicating a revival in the IPO landscape.
As the pair wrap up, they touch on the earnings reports from major tech companies, highlighting the strong performance of names like Alphabet, Meta, and Microsoft, while also acknowledging the mixed results from Amazon.