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Fed Rate Cuts and Market Reactions: Insights from Gabriela Berrospi

Latino Wall Street Market Movers: The Opening Bell

October 30, 2025

Video Transcript

After keeping rates unchanged for 9 straight months, the Fed has now cut interest rates 2 months in a row.

Now 3rd quarter earnings season has crushed expectations so far, with over 80% of S&P 500 companies beating estimates, and we got some more beats yesterday from Mag 7 names, Google and Microsoft, yet Meta missed on EPS by over $5 a share.

Joining me on this.

The morning to weigh in is Gabby Barrosby, who's the CEO and founder of Latino Wall Street.

Gabby, good morning.

Thank you so much for joining us.

So today is the day after the two-day Fed meeting, as well as some key tech earnings from Mac 7 names.

So let's start out with the Fed first.

What was your reaction to the 25 basis point cut, but more importantly to Powell's presser?

Yes, good morning, Rey.

So what we saw yesterday was very interesting and, and I have to say quite typical of what we've been seeing with the Federal Reserve.

So what I mean by that is we all knew we were going to cut 25 basis points.

That was if you went on the Fed watch, the probability was over 95%, so that was almost guaranteed.

I don't think anyone was surprised by that.

What tends to always give us a surprise was Jerome Powell's speech and what he said that the December cut was not confirmed.

I think that's what that spooked the market.

The markets did not like.

Uh, something that we were basically counting on, right, because if you go on the Fed watch before this meeting, it was the December rate cut was over 90% probability as well as the October 1 and after he said that it went down more than 20% of probability.

So of course the markets are not going to like this uncertainty.

Also it's known there's a division now in the Federal Reserve.

Board members that many don't agree about the December cut, so learning that there's a division between the leaders was also not very good for the markets.

So I think moving forward the markets are always going to be forward looking, right?

It's not so much.

Reacting to what is the decision for the day, but it's more so moving forward in the next few months in the next year that's what we try to to find out during the press conference what can we expect?

And since we don't have a clear path now because of Powell's words, that of course is going to bring a lot of volatility.

Yeah, it was interesting to watch, not just equity markets, but also the bond markets as Powell started speaking yesterday.

And of course we have been paying attention to earnings this morning.

Last week we talked about Tesla, and now let's focus on some other Mag 7 names including Alphabet, that Microsoft.

So what were the key takeaways from yesterday's earnings after the closing bell?

Yeah, I think for me the key takeaways were that there's way too much spending going on in AI, specifically in data centers.

I mean, look, we know they've been very aggressive spending hundreds of billions of dollars every quarter.

Between all of them, but it's starting to affect the stock, which is interesting because you would think, you know, this expansion, innovation, huge investments would be something that would actually help, but at the end of the day it's about the bottom line and earnings focused on revenue and the bottom line and we saw, you know, for example with Meta and Microsoft that the forecast of increased spending.

It's not helping the the stock react in a good way.

It's not so much the revenue, you know, we know the revenue is there, but definitely the it's again, right, earnings are forward looking very similar than the Fed decision.

It's what is coming next.

It's not so much how do we do in the last quarter?

Yes, that's important for the fundamentals, but.

Investors care more about what where are we going next?

I think Google is the one that's shining very bright, you know, it, it, it surged over 7% after reporting stronger than expected earnings.

The AI revolution is here.

We just have to be careful with the, the estimated that we're going to be spending with these big companies because we don't want that to affect the bottom line.

And Gaby, before I let you go, let's talk about stock milestones.

So this week we saw the Dow, Nasdaq, S&P 500 hit new record highs.

And when we're talking about some of the big tech names Apple hitting 4 trillion, Nvidia eyeing that $5 trillion level.

So as we head into your end, are there any price targets or milestones that you're paying attention to?

Well, I have been paying attention to my price target of Nvidia to hit 200, and I had been saying for a long time in in my investor community in Latino Wall Street that I don't know why Nvidia is not at the 200 price point yet, right, and it reached it in the last day.

So in the last couple of days.

So I think this is just the beginning.

There seems to be this psychological thing that happens that when a stock hits 100 for the first time or 200 for the first time, it tends to go up even more quickly.

It's almost like we've had this like breakthrough of like a new barrier, it's broken and then, you know, we go up more.

So I think.

Um, with video, for example, we will continue to see that upward trend, and every tip will be an opportunity.

And with the SAP 500, I think that breakthrough level is 7000.

Once we break the 7000 that we've gotten very, very close to over 6900, I think that will be that key level, that psychological level that could. essentially bring us a lot higher too if everything happens according to plan.

We need agreements with China, right?

It's not confirmed yet.

It looks like we're heading in the right direction, but that's crucial.

This holiday season cannot disappoint, and we need more positive earnings than negative because we know not every earning, not every company is going to.

Surprise us in a good way with their earnings, but we at least need most of the SAP 500 to do well and then I think that will continue this bullish upward trend at least for the end of this year, for next year, we'll see.

OK, Gaby, well thank you so much for joining us the day after the Fed, as well as after some key tech earnings.

Remy Blaire engages in a compelling discussion with Gabriela Berrospi, the CEO and Founder of Latino Wall Street. The segment centers around the recent developments in the financial markets, particularly the Federal Reserve’s decision to cut interest rates for the second consecutive month after maintaining them for nine months.

Remy begins by highlighting the context of the Fed’s 25 basis point rate cut and the reactions from the market. Gabriela notes that the cut was widely anticipated, with a probability exceeding 95% leading up to the meeting. However, the real surprise comes from Jerome Powell’s press conference, where he casts doubt on the likelihood of a December rate cut. This uncertainty spooks the markets, as Gabriela explains that the probability of a December cut dropped significantly after Powell’s comments, leading to increased volatility.

The conversation then shifts to the recent earnings reports from major tech companies, particularly the MAG7 names, including Google, Microsoft, and Meta. Gabriela points out that while these companies are heavily investing in AI and data centers, this aggressive spending is starting to impact their stock performance negatively. Despite strong revenue figures, the focus on future earnings and spending forecasts becomes crucial for investors. Google stands out with a notable surge in its stock price following better-than-expected earnings, while Meta’s significant EPS miss raises concerns about its financial outlook.

As the discussion progresses, Remy and Gabriela explore stock milestones, including the recent record highs for the Dow, Nasdaq, and S&P 500, as well as significant valuations for companies like Apple and Nvidia. Gabriela shares her price target for Nvidia, which recently reached the $200 mark, and discusses the psychological effects of such milestones on stock performance. She emphasizes the importance of breaking through key levels in the S&P 500, particularly the 7,000 mark, and the necessity for positive earnings reports as the year comes to a close.

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