“If it stays shut for more than three weeks, it could impact the GDP as much as 1%.” – 01:30
Peter Tuchman, Senior Floor Trader at TradeMas, joins Remy Blaire at the New York Stock Exchange to discuss the remarkable week in the markets as we closed out the first full week of October. The pair noted that several indices, including gold, bitcoin, the S&P 500, Nasdaq, and Russell 2000, reached all-time highs despite the ongoing federal government shutdown, which poses risks to key economic data reports.
Peter highlights that the market has shown resilience, even in the face of potential GDP impacts from the shutdown, with estimates suggesting a possible 1% reduction if it continues for more than three weeks. He pointed out that the market’s performance is driven by new allocations of money, particularly from the major tech companies investing heavily in capital expenditures, especially in AI and data centers.
Approaching the official start of earnings season next week, with major banks like Morgan Stanley and Goldman Sachs reporting, Peter breaks down the importance of watching their guidance and the potential effects of tariffs on various sectors. Peter emphasized the need to monitor upcoming economic data and the implications of the government shutdown, as these factors could serve as catalysts for market movements.