Market Volatility Tests Investors as Earnings, Metals, and Crypto Swing

Remy: Last Thursday, we saw the S&P 500 hit the 7000 milestone. But despite the fact that the major averages are trading near record highs, we've seen some sharp sell offs over the past few days. UnitedHealth lost 20% last Wednesday because of a potential shift in U.S. Medicare policy, and Microsoft losing around $360 billion in market cap on Thursday after its earnings report. Meanwhile, precious metals, gold and silver hit records Thursday and then had record sell offs on Friday after Trump nominated Kevin Warsh to be the next Fed chair. Meanwhile, crypto ended January with more mass liquidations. Bitcoin briefly dipped below $76,000 Saturday, while Ether fell below $7,300. Well, joining me as we kick off a new trading month is Gaby Berrospi, CEO and founder of Latino Wall Street. Gaby, great to have you back. Thank you so much for joining us.

Gaby: Thank you Remy, it's great to be here.

Remy: Well, first and foremost, when it comes to earnings, we've gotten a slew of reports. And of course this week we're paying attention to tech. But what are the key takeaways so far for you?

Gaby: Yeah, I think for a tech it's definitely been like a very, you know, volatile scenario, right? So of course, when you are the top companies in the world, the analyst in Wall Street, they're expecting the best of the best.

And if you don't exceed those expectations, sometimes very unfair because what happens is that the stock can get can go down so much, but not because they report it in a bad way, but because they didn't exceed the expectations So when it comes to earnings, we just have to remember it's not so much it's the company doing well or not for the stock reaction, it's more did it exceed expectations or not? And we're seeing a combination of that.

Remy: Yeah. And another area of the market we're paying attention to is precious metals. So gold this morning is holding right below $4,800 and silver is around the $80 handle. But of course we saw gold rally to $5,500. And that is a massive increase. So what do you make of all this volatility we're seeing in precious metals.

Gaby: Yeah I mean the volatility to be honest with you has been very shocking with precious metals because they're not normally not as volatile as a tech stock, right? Quite the opposite. They're supposed to be more stable stocks. But I think right now what we're seeing is that gold and silver are basically forward looking. You know, they're looking at what's going to happen in the next few months. The new Fed chair. And they're saying this is going to, you know, have a biggest impact on the dollar. if we're going to continue to cut rates and then we're going to go into quantitative easing and print money and stimulate the economy.

That can sound like a fun party in the short term, but in the long term we know how that goes. We're going to have to pay the bill for that. The dollar is already affected. So the gold is reacting to that And it's forward looking. It's looking at what's coming next.

Remy: Yeah. And speaking of what's coming next, another asset class we're paying attention to here is crypto. So we did see Bitcoin as well as ETH sell off over the weekend. And in today's session we're looking at Bitcoin trying to hold key levels right below $80K. And for ETH above $2,300. But where do you see crypto going near-term?

Gaby: I think we're in an administration that's very pro-crypto, and I think they're going to do everything to make sure it doesn't crash. Like some opponents say it will. I think that we have a government that really supports crypto. However, right now, with all the uncertainty, with geopolitical tensions, with the new fed chair, all these wild cards we have for 2026, I think we're seeing the money, you know, come out of crypto, go into commodities such as gold and silver. And also that's why we see so much volatility in the regular stocks right. Because people want a safe haven. So crypto, specifically Bitcoin, is not a safe haven. And we know that from experience. So we need to take a look. But I do think in the long run it will be well, especially during the Trump term.

Remy: And Gaby you mentioned geopolitics. That's an area we will continue to monitor. But of course, when it comes to politics, we're also eyeing the nation's capital. Today there will be the White House summit on crypto, so that's something we'll be watching. But the nomination of Kevin Warsh as the next Fed chair pick by Trump. What do you make of that?

Gaby: Look I was a little bit surprised. I quite frankly didn't think he was going to be chosen. He you know, it's like an obvious choice in the way that he has the experience. He was the youngest fed governor. But at the same time, from what I've studied about him, he's like an inflation hawk. He was not all about cutting rates. And now he looks like he's switched because obviously Trump is looking for that. So it'll be very interesting to see how it plays out. And if he stays on the same page with the president about cutting rates aggressively because that's what they're looking for, for the new Fed. They've been very clear and very honest with that. Powell's obviously not on the same page. So I can't wait to see if it unfolds the way they think it will.

Remy: Well Gaby, always great talking to you. Thank you so much for joining us live from the New York Stock Exchange.

Gaby: Thank you.