“People are buying things that are giving them a quick return, like the market, like crypto, like gold.” – 02:36
Peter Tuchman, Senior Floor Trader at TradeMas, joins Remy Blaire at the New York Stock Exchange who provides his expert insights on the market’s trajectory. The discussion begins with a focus on AMD’s recent AI chip supply deal with OpenAI. Peter elaborates on the broader implications of this partnership, referencing comments from the CEO of SoftBank regarding NVIDIA’s valuation and the escalating demand for chips and data centers driven by the AI revolution. He highlights the substantial capital expenditures being made by major firms like Google, Microsoft, and Oracle in AI, suggesting that collaborations like AMD’s are a strategic move to leverage existing infrastructure rather than building from scratch.
As the conversation shifts to the effects of the government shutdown, Remy and Peter discuss the economic data blackout it has caused, particularly the delay of the jobs report, which limits the Federal Reserve’s ability to gauge the economy ahead of its October rate decision. Peter expresses confidence that the Fed will still find ways to gather necessary information, indicating that an interest rate cut in October is a possibility, despite the prevailing uncertainty.
The segment also delves into the current market sentiment, characterized by a wave of irrational enthusiasm among investors. Peter notes that this enthusiasm is driving investments across various assets, including stocks, cryptocurrencies, and gold. He emphasizes that the market is forward-looking, with investors focusing on potential growth through 2026, and he anticipates a robust market performance as the economy enters a cycle of interest rate cuts.
Before concluding the segment, Remy and Peter discuss key market levels to monitor, including the Dow, S&P, and NASDAQ, all of which are nearing significant milestones. Peter underscores the importance of these numbers as indicators of market confidence and investment activity, sharing anecdotes from his extensive career on the trading floor to illustrate the rapid acceleration of the market and the substantial capital being deployed.