“We are setting ourselves up for a cut.” – 04:15
Peter Tuchman, Senior Floor Trader at TradeMas, joins Remy Blaire at the New York Stock Exchange to discuss the current state of the stock market and the broader economic landscape as we kick off a new trading week.
Peter starts by discussing the Dow Jones Industrial Average, which is nearing a record high, and how the market rally is expanding beyond just the tech sector, with small-cap stocks also tracking higher. A significant factor contributing to this rally is UnitedHealth’s stock surge following the news that Berkshire Hathaway, led by Warren Buffett, has taken a $1.6 billion stake in the healthcare giant.
Peter highlights that despite August typically being a weaker month for the markets, we are witnessing strong fundamentals and positive earnings reports. He notes that while tariffs and inflation have had some impact, the market seems to have disengaged from the volatility that previously accompanied tariff discussions. Instead, there is a sense of optimism as backdoor diplomacy appears to be yielding results.
Peter notes that European leaders are gathering with President Trump in Washington, D.C. He emphasizes that while political events can influence the market, the most critical factor this week is Federal Reserve Chair Jerome Powell’s upcoming speech in Wyoming. The market is anticipating potential interest rate cuts, with current probabilities suggesting an 82.9% chance of a cut on September 17th.