“I don’t see anything crazy happening. We always know that we’re one tweet away from crazy town.” – 04:09
Peter Tuchman, Senior Floor Trader at TradeMas, joins Remy Blaire at the New York Stock Exchange to provide an in-depth analysis of the current state of the U.S. stock market as the trading week begins. The segment opens with a discussion about the major stock averages, which are showing positive movement after finishing the previous week relatively unchanged. Remy highlights that the end of the third quarter is approaching, a period that has seen the Dow, S&P, and Nasdaq reach record highs. However, a looming government shutdown threatens to create uncertainty, as Congress must act by midnight Tuesday to prevent it.
Peter expresses a sense of confidence among investors, noting that past government shutdowns have often resulted in anxiety but rarely lead to actual shutdowns. He explains that with the market trading at record highs, there is no need for “window dressing,” a tactic typically employed when markets are down. Instead, he observes a mix of profit-taking and a significant amount of capital still on the sidelines, as larger funds and institutions seek to catch up with the market’s performance.
As they transition into October, a month known for its volatility, Remy and Peter explore the relevance of seasonality in the current market environment. Peter emphasizes that the lifeblood of the market is earnings and guidance, particularly in the AI sector, which has been a significant driver of growth. He points out that major companies like Microsoft and Oracle are heavily investing in AI, indicating a promising future for the sector.
The conversation also touches on the risks that could impact the market as the year comes to a close. Peter notes that while some investors express concerns about the market being overvalued, the VIX, or fear index, does not currently reflect widespread fear. He reminds listeners that the market often defies expectations, continuing to reach new heights despite various challenges faced over the past year.