“We’re coming to the end of the third quarter. We do know that we’re in the beginning of a rate-cutting cycle.” – 00:02:10
Peter Tuchman, Senior Floor Trader at Trademas, joins Remy Blaire at the New York Stock Exchange to share his insights on the complexities of the economic landscape and its implications for market behavior.
Remy begins by highlighting the recent record-breaking rally in the markets, noting that while there has been a pullback, major stock averages are showing signs of strength ahead of the market open. She points out that optimism regarding potential Federal Reserve rate cuts is beginning to wane, as divisions among policymakers cast doubt on the timing and likelihood of these cuts occurring this year and next.
Peter elaborates on the mixed economic data that has emerged, including better-than-expected GDP growth for the second and third quarters, as well as the PCE index coming in as anticipated. He emphasizes the multitude of factors influencing the market, such as new tariffs and developments related to TikTok, which complicate the overall market response. Despite some recent soft economic indicators, Peter notes that there are positive signs, including the core PCE aligning with expectations and GDP showing an upward trend.
As they analyze market behavior, Peter discusses the significance of shallow pullbacks and intraday reversals, particularly within the tech sector. He observes that many investors are actively repositioning their portfolios, especially those who missed out on earlier gains. The small-cap Russell index recently hit a record high, driven largely by AI-related stocks, before experiencing a slight pullback.