“Everyone’s fear was that we had new Palantir head earnings that came out. They were stellar and the stock went down 8%.” – 01:14
Remy Blaire discusses the current dynamics of the U.S. stock market with Peter Tuchman, Senior Floor Trader at TradeMas. The segment opens with a focus on the positive movement in U.S. stock futures, which have risen following comments from New York Fed President John Williams, who advocates for a potential rate cut in December. The probability of this rate cut is noted to be above 70%, generating interest among investors.
Remy and Peter reflect on the previous day’s market activity, where major stock averages initially rallied due to strong earnings from NVIDIA and favorable jobs data. However, the momentum quickly dissipated, leading to a significant sell-off by the end of the trading day. The delayed September jobs report reveals that the U.S. added 119,000 jobs—more than double the expectations—though the unemployment rate increased to 4.4%. NVIDIA’s record quarterly sales of $57 billion and Walmart’s raised financial outlook contribute to the initial optimism in the market.
Peter shares his insights on the volatility observed in the market, particularly highlighting the unexpected drop in Palantir’s stock, which fell 8% despite reporting stellar earnings. He explains the classic Wall Street adage of “buy the rumor, sell the news,” emphasizing how market behavior can often defy expectations. The conversation shifts to the ongoing debate about the AI sector, with Peter dismissing claims that it is a bubble, citing substantial investments from major tech companies like Microsoft, Google, and Oracle.
As the discussion progresses, Remy and Peter analyze the recent volatility in the cryptocurrency market, particularly Bitcoin, which has fallen below $81,000. Peter explains that this decline is linked to high leverage in crypto brokerage firms and significant margin calls that forced traders to liquidate positions in stocks like NVIDIA and Palantir to cover their losses.
Looking ahead to the upcoming holiday-shortened week, Remy and Peter highlight the MSCI global index rebalance scheduled for Monday, which is expected to bring increased trading volume and market rotation. Peter expresses optimism about the potential for the Dow to reach 50,000 and the S&P to hit 7,000 if the Fed proceeds with a rate cut.