“Every day, we’re hearing multi-billion dollar partnerships and deals that are happening within the AI complex.” – 03:35
Michael Reinking, Senior Market Strategist at NYSE, joins Remy Blaire to discuss the current state of the U.S. stock market as November begins. The segment opens with a focus on the recent decline in U.S. stock futures, alongside warnings from CEOs of Goldman Sachs and Morgan Stanley about potential market drawdowns in the next 12 to 24 months.
Remy and Michael analyze the market’s pullback, attributing it to a broader trend of weakness observed over the past week. Michael highlights the deterioration in market breadth and the impact of comments from Federal Reserve Chair Jerome Powell, which have raised questions about the future direction of monetary policy. They also touch on the concerning price action in the cryptocurrency market, noting that speculative investments are beginning to unwind.
As they look ahead to the December Federal Reserve meeting, the conversation shifts to the mixed signals coming from Fed members. Some are advocating for rate cuts, while others express concerns about inflation, creating uncertainty in the economic landscape. Michael emphasizes the importance of upcoming economic data releases as they prepare for the Fed’s decisions.
The discussion then transitions to the ongoing earnings season, particularly focusing on the performance of major tech companies. Despite strong earnings reports, the market reaction has been mixed, with stocks like Palantir and Uber experiencing declines. Michael shares his bullish outlook on the industrial sector, driven by trends in reshoring and on-shoring, as well as the potential impact of tax cuts on consumer spending.