“If Powell does strike a more hawkish tone, that could cool the rally.” – 00:41
Peter Tuchman, Senior Floor Trader at TradeMas, joins Remy Blaire from the New York Stock Exchange to discuss the current dynamics of the U.S. stock market, highlighting a significant rally with the Dow and Nasdaq both experiencing triple-digit gains.
Tuchman expresses his expectation that Powell will set the stage for a potential rate cut, especially in light of disappointing economic data released since the last Fed meeting. He notes the unusual dissent among Fed governors during that meeting, suggesting that there is increasing pressure for a more accommodative monetary policy as economic indicators show signs of weakness.
The conversation shifts to the recent pressure on big tech stocks, which Tuchman interprets as a market rotation. He explains that while these stocks have been strong performers, investors often reposition themselves as the year comes to a close. Tuchman mentions a notable put bet in the options market on the Q’s, indicating that some investors are bracing for a market pullback. Despite this, he remains optimistic, pointing out that stocks like Palantir are already showing signs of recovery after a brief decline.