“For it to be a real knock it out of the park event, Apple’s got to talk a little more about Apple intelligence.” – 03:23
Chris Versace, CIO of Tematica Research, joins Remy Blaire to discuss the troubling state of the U.S. labor market, which is exhibiting significant signs of strain. The latest jobs report reveals that nonfarm payrolls added only 22,000 jobs in August, indicating a sharp slowdown in hiring. The unemployment rate has risen to 4.3 percent, the highest level since 2021. Remy highlights that more industries are losing jobs than gaining them, and revisions to past data show that the three-month hiring trend is the slowest it has been in over a decade, excluding the pandemic period. While the healthcare sector remains a bright spot, it may not be sufficient to offset the broader economic weaknesses.
Chris delves into how the disappointing jobs report is shaping expectations for the upcoming Federal Reserve meeting, particularly regarding potential interest rate cuts. Chris discusses the possibility of the Fed delivering a rate cut in September and addresses the market’s expectations for multiple cuts this year. He emphasizes the importance of upcoming inflation figures and how they could influence the Fed’s decisions.
The conversation then shifts to the tech sector, with Remy looking ahead to Apple’s annual fall product event, a significant moment for both the tech industry and consumer sentiment. Chris underscores Apple’s importance within the S&P 500, suggesting that the company’s performance can impact the market as a whole. He speculates on what to expect from the event, including potential announcements about new iPhones and advancements in artificial intelligence. Chris notes that for the event to be truly impactful, Apple needs to provide more information about its AI initiatives.
Additionally, they discuss the Goldman Sachs Communicopia and Tech Conference, which is set to feature key presentations from major companies like Microsoft and Nvidia. Chris highlights the significance of this conference in the current market environment, noting that reaffirmed or raised earnings expectations could drive the market higher.