Let's get to the big story breakdown.
Well, Wall Street is looking at a slightly higher open a day after the S&P 500 posted its longest losing streak since August.
Now US stocks fell again on Tuesday as tech shares continue to retreat as investors grow concerned about the valuations of AI-related companies.
Now a new survey showing that 45% of fund managers see an AI bubble as the biggest market risk.
Well, ahead of Thursday's delay.
September jobs report ADP data showing that private sector job losses are moderating and weekly jobless claims held at about 232,000 in mid October.
Joining me this morning is Matt Chesla, equity trader at Virtue Financial.
Good morning, Matt.
We're here awaiting Nvidia earnings later today.
But what do you make of this market action we've been seeing?
Wow, we're always awaiting something.
It happens to be one of the biggest companies in the world right now.
But you know everyone's forecasting maybe an AI tech focused sell off.
This just coincides with the end of the year.
You know we saw a report out today that fund managers are light on cash.
How do you get cash?
You sell stocks that have appreciated, especially toward the end of the year where you can rebalance your portfolio for 2026.
So this may be a good time to take some profits off the table.
We're starting to see massive investments or Still seeing massive investments in the AI space, so I find it hard to believe that it would be bubble-ish, but it might be a little frothy and a time to take a little profit off.
So Nvidia is going to be in focus.
We haven't had a whole lot to focus on because some of the government data has been delayed or hasn't been out since the strike, yeah, since they were out of work.
So you know, we're going to hyper focus on some of these names and obviously Nvidia is going to end it all.
And we'll be getting those earnings out after the bell, and tomorrow we will be getting jobs data.
So a lot to focus on and of course the key event before your end is the Fed meeting for the month of December.
So what would you be looking for between now and the December Fed meeting?
Well, you know, there is some deliberations that are going to take place and it's going to be interesting because we aren't quite sure and that's for a trader that's awesome, right?
You love a little bit of that uncertainty, right?
So there may be an opportunity where they don't cut, which I think would be a surprise, but if that does happen, then people are going to be caught off guard.
So you know this is a great time, as I mentioned, to maybe raise some cash, maybe have some.
Some assets available to reinvest in some stocks that may be taking a little bit of a beating, you know, but again we're microanalyzing all of these earnings reports, you know, we had Home Depot yesterday that was down.
We have Lowe's today, two similar companies, but they're going to react very differently after earnings, so.
Um, you know, as a money manager, you want to focus on where you see value and these events maybe where we don't get a rate cut would provide some value because it would catch people by surprise.
Yeah.
And speaking of value, I do want to ask where you're seeing it right now because if we take a step back and look at the gains for these sectors and the S&P 500, we've been seeing healthcare higher in the past several weeks as well as energy.
So what do you make of some of the sectors and where are you?
Actually seeing this value.
Well, that's not a surprise when you see those kind of lagged throughout the year based on some of the tech focused investments that we saw.
So when you rotate out of tech, what are you going to do with it?
You're going to buy value.
So is healthcare of value now?
I'm not so certain.
You may be a little late on that, you know, the consumer discretionary saw some sell off, you know, we're starting to see a bit in the energy space.
Why?
Because it hadn't really performed well in 2025.
So you know.
Are the types of events you want to look for, but you want to be early on them.
You don't want to ride when everyone else is.
So you know, again, now I think there's going to be some cash raising, and I think people are going to be excited about 2026.
Maybe the government shutdown is over.
Maybe we can have some clarity on that.
Maybe we get a frothier IPO market next year where people are more excited.
So there's a lot to look forward to in 2026.
Yeah, so you touched on some trends that you're watching as we head into 2026, and of course we'll continue to watch the difference between.
Value and growth and other factors including say M&A as well as IPOs, but when we look at the catalyst, of course we'll be paying attention to what the Fed says following the December meeting.
But then we also have expectations, anticipation of the big beautiful bill and perhaps we do get another government shutdown if we're just kicking the can down the road.
Well, that's generally what we like to do, kick the can down the road, but you know we're starting to talk about maybe a new Fed governor too, and what does that mean for the economy.
And what does that mean for the market?
So again, there's a lot to look forward to, and I think that's what's so exciting about being an investor is that things change day to day, you know, we saw the market was down big Monday, down big yesterday.
We kind of held in there, rallied a little bit, so we didn't close as off as we were.
And now we're seeing a little positive move today.
This is good.Build a little base.
Let's get some news under our belts like Nvidia, and maybe we have some idea of what we're going to expect going forward at the end of the year.
OK, Matt, always great talking to you.
Thank you so much for joining me and thank you so much for all your insight.
Thank you.
