“By and large, the domestic economy is continuing to hold up honestly, far better than people were thinking a few months ago.” – 01:19
Chris Versace, CIO of Tematica Research, joins Remy Blaire to discuss the latest economic data and its impact on the U.S. stock market. The segment opens with a positive overview of the major U.S. stock averages, highlighting that the Dow Jones Industrial Average is up by 0.5%, while the Nasdaq and S&P 500 have also seen slight gains. Remy notes the recent slide in U.S. equities earlier in the week but emphasizes the stronger-than-expected second quarter GDP growth of 3.8%. She also mentions a decline in weekly jobless claims, indicating fewer Americans are filing for unemployment, and a rebound in monthly durable goods orders, primarily driven by a significant increase in aircraft orders.
Chris shares his perspective on the current state of the economy, suggesting that it is performing better than many had anticipated just a few months ago. He acknowledges some uncertainty in the employment picture but asserts that consumer spending and business investments are on solid ground, indicating a potentially stable economic environment.
The conversation shifts to the Federal Reserve’s recent communications, particularly the possibility of two more rate cuts before the end of the year. Chris explains how this development could positively influence market sentiment, especially in light of the latest core PCE price index data, which shows inflation is stabilizing. He suggests that the worst of tariff-related inflation may be behind us, further supporting a favorable outlook for the economy.
As they delve into the stock market, Remy and Chris discuss the recent performance of major U.S. stock averages, particularly the volatility experienced by big tech stocks. Chris addresses concerns about investment dynamics among tech companies but reassures listeners that the long-term outlook for AI and data center demand remains strong. He points out that earnings expectations for the latter half of 2025 and into 2026 are beginning to rise, which could bode well for market performance in the coming months.