“At some point here, we’re going to get days like today where you’re going to see profit-taking.” – 01:36
Jonathan Corpina, Meridian Equity Partners, joins Remy Blaire at the New York Stock Exchange to discuss the current state of the stock market, particularly in light of recent economic indicators and Federal Reserve expectations. I begin by discussing the recent decline in Wall Street, which follows hotter-than-expected wholesale inflation figures. This comes after a session where stocks rallied, fueled by investor optimism regarding a potential rate cut from the Federal Reserve as early as September. Treasury Secretary Scott Bessent’s call for a significant cut of up to 175 basis points, citing a weakening job market, adds to the growing anticipation surrounding the Fed’s next moves.
Jonathan highlights the impressive performance of the Nasdaq and S&P 500, which recently closed at record highs. He attributes this upswing to a combination of a strong earnings season and positive economic data, which has led to increased confidence in the Fed’s impending rate cuts. However, he also notes that after such a strong run, profit-taking and concerns about market sustainability are natural.
The pair also touch on the resurgence of the IPO market, with Jonathan expressing optimism about the increasing number of companies going public. He believes this is a positive sign for the financial sector and the overall market, as companies are finally finding the right timing to raise capital.