“AI is one of the best things that could happen to small business.” – 05:01
Luke Lloyd, President & CEO of Lloyd Financial Group, joins Remy Blaire to discuss the current state of the U.S. stock market, which has recently seen significant gains, particularly in the Nasdaq and S&P 500, following the release of inflation figures. Core inflation rose by 3.1% year-over-year in July, slightly above estimates, with most of the increase attributed to services while goods inflation remained stable. This data comes amid growing concerns about a softening labor market, and we discuss how the Federal Reserve’s next moves could significantly impact mega-cap tech stocks, which now represent over 70% of the total market value.
Luke explores the reasons behind the rally, noting that a substantial amount of money—approximately $7.6 trillion—sits in money market funds, leading many investors to feel the pressure of missing out on substantial returns. Luke emphasizes the importance of the Federal Reserve’s potential rate cuts, particularly in light of a more dovish tone from members like Neel Kashkari, which could further influence market dynamics.
The pair also discuss the implications of artificial intelligence (AI) on both large corporations and small businesses. Luke highlights that while large companies may use AI to improve efficiency, small businesses stand to benefit significantly from AI-driven innovation, allowing them to reduce costs and enhance operations. He points out that the cost of starting and running a business is decreasing, which could lead to a surge in small-cap companies.