Remy Blair is joined by Peter Tuchman, Senior Floor Trader at TradeMas. Peter shares his perspective on the market’s volatility, particularly in light of the MSCI quarterly rebalance occurring this week. He explains that the market’s recent turmoil was exacerbated by the earnings report from Palantir, which led to fears of an AI bubble. Peter emphasizes that the market’s primary concern is now centered around interest rates and the likelihood of cuts from the Federal Reserve.
Peter reveals that the probability of an interest rate cut has surged to 79%, contributing to a relief rally in the market. He anticipates that the MSCI rebalance will have a significant impact on trading, especially given the recent fluctuations in stock performance. Remy and Peter also discuss the VIX, which, despite a slight decrease, remains elevated, indicating ongoing uncertainty in the market.
As they look ahead to the rest of the week, Peter underscores the importance of retail earnings, particularly with Black Friday approaching. He expresses optimism about the retail sector’s performance, suggesting that a strong consumer base could lead to a robust holiday season. Peter humorously shares his personal aspirations for the market, mentioning his manifestation of a 50,000 Dow and 7,000 S&P, complete with printed hats.