In New York morning trade, we are looking at the Dow as well as the S&P 500 in negative territory, but this does come on the heels of both of those averages hitting new record highs.
Now we just got the release of producer prices earlier today, which came in harder than expected.
Joining me to break down what's moving the market.
Is Gabriella Barros, CEO and founder of Latino Wall Street.
Gabby, thank you so much for joining me.
So given that we saw record highs for the S&P 500 and Nasdaq yet once again in the previous session, and we're seeing this pullback in today's session, what's your take on where our markets stand right now as well as the latest economic data?
Yes, so you know we've seen this like euphoric sentiment in the markets and it has everything to do with interest rates and what's coming up on September, right?
We have the official Fed meeting on September 17th.
We have, according to a Fed watchtch tool, about a 90% chance we will cut rates.
So there's been this euphoric sentiment in the market, and we hit record highs once again.
And so it's normal that after we do that, you know, we'll see um a downward trend after.
There's of course still a lot of uncertainty um because of the tariff situation that hasn't been fully solved because of the, you know, China deal that's not.
100% clear what's going to happen.
So all this uncertainty is also going to cause volatility.
So we will see record highs, but at the same time they won't necessarily stay there and last, but you will see, you know, traders taking profits and a downward trend after that because there's so much going on and you know, the economic data with inflation played a big role.
It, you know, we, we do see there's an upward trend with inflation, but at the same time it's under control.
It's the reporting as expected.
There's nothing major there that would concern us, so we just have to, you know, keep following what, you know, what keeps coming out.
Yeah, and Gabby, as you mentioned, we are looking ahead to that Federal Reserve meeting taking place in September and also to get a better idea of what to expect from the Fed as we head into your end.
But you mentioned tariffs and we did get the producer prices out this morning.
So how are you factoring in tariffs effect as we head into the rest of 2025?
Well, I just, I have come to terms that it's going to be an extremely volatile market.
I think this year has been the year of volatility, right?
If we look back at how we started, it was actually, it seemed pretty bearish, which was a big surprise because we thought.
You know, most people had high expectations that this administration came in, oh, we're going to kill it.
Everything's going to explode.
It's quite the opposite.
The markets were scared, but then it took off, right?
So I honestly think that if we start cutting rates next month, which it looks like we will, there's a 90% chance.
I do think that's going to, you know, be bullish.
We will see.
The uncertainty, we will see all sorts of, you know, news with economic data.
Did we make the right decision with tariffs, geopolitical tensions.
I don't think that's going to go away, but I think the trend will be an upward trend with tons of volatility, but I do believe the end of the year would actually be the most bullish part of the year because then we also have Um, holidays and whatnot that that is known for being the best season for the markets.
And Gaby, finally, before I let you go, we have exactly 60 seconds here, so I do want to get your take on what we're seeing in crypto with Bitcoin hitting new record highs in the previous session and I getting close to all-time highs as well.
What do you make of what we're seeing in crypto?
Well, crypto, you know, I was at the White House for crypto Week and I saw them pass all these new acts, and this government, this administration supports crypto.
They're going to be, you know, doing a lot more with that, and I think it'll become part of our daily lives more and more as time goes by.
So, you know, interest rates, they don't just affect the stock market, that also affect the crypto market.
They also affect the real estate.
They, you know, basically impact the markets and right now with where we're at we are very bullish in those markets because the interest rate cycle, um, it's about to start, it's about to change, right?
And once we go into this new cycle, then you know we can expect to see more record highs.
OK, Gaby, always great talking to you.
Thank you so much for joining us on this Thursday morning and as always, thank you so much for your insights.
Thank you.
