AI-Driven Volatility, Softening Labor Trends, and a More Dovish Fed Path…   Investor attention pivoted last week from the Federal government’s reopening to the sudden fragility of the AI-driven stock trade. The core group of mega-cap beneficiaries—Amazon, Nvidia, Microsoft, Meta, Oracle, Google and Tesla—has broadly traded lower this month with Oracle down more than 20%...Read More

Markets Rebound as Government Looks Likely to Reopen…   Equities began the week higher despite ending the prior one on a softer note, supported by optimism that a bipartisan deal to reopen the government was imminent. Late Sunday, eight Democratic senators joined Republicans in approving a short-term funding measure, marking the likely end of the...Read More

Fed continues its rate easing even as elevated inflation persists while data clarity fades… Today’s 25-basis-point rate by the Federal Reserve Open Market Committee (FOMC) continued its broader interest rate easing cycle. Given Chair Powell’s post meeting comments, interest rate futures declined appreciably from an 85% probability to a 69% likelihood of another quarter-point rate...Read More

Fed Cuts Rates as Labor Market Risks Mount…   Last week, the Federal Reserve announced its first rate cut of the year, lowering the overnight federal funds rate by 25 basis points. Chair Jerome Powell emphasized in his post-meeting remarks that the decision was not a response to political pressure but rather a reflection of...Read More

Fed Poised for Rate Cut Amid Labor Weakness and Political Pressure…   The FOMC meets next week with expectations firmly set on a rate cut. Markets see a 25-basis point move as the most likely case, but weak labor data has raised the probability of a 50-point cut. Morgan Stanley recently updated its outlook, now...Read More

Markets brace for likely September rate cut as the Fed chair recasts economic risks…   The Federal Reserve’s annual Jackson Hole summit concluded with a notable shift in tone from Chair Powell and his colleagues. Powell emphasized that “the balance of risks appears to be shifting,” suggesting that concerns are no longer concentrated solely on...Read More

Markets Weigh Mixed Inflation Data Amid Trade and Policy Shifts… The latest Consumer Price Index (CPI) report — the most widely followed gauge of U.S. inflation — showed a mixed picture for July. Headline inflation came in at 2.7% year-over-year, slightly better than the 2.8% economists expected. Core CPI, which excludes volatile food and energy...Read More

The Pressure for Rate Cuts is Increasing… Despite war raging in the Middle East and Europe, domestic protests across the country, and volatile tariff policies, American markets continue to move higher. The S & P 500 and the Russell 1000 Value indices are now positive on the year with Treasuries continuing to trade in a...Read More

Tariff uncertainty continues to have economic ripple effects… Tariff headlines continue to dominate the news and is strongly influencing not only the US economy but that of the world. Last week, the Bureau of Economic Analysis confirmed the drop in GDP for the first quarter of 2025 to an annualized decline of 0.2%, slightly better...Read More

  And another pivot in U.S. tariff policy…   Over the weekend, the United States and China jointly declared a 90-day suspension of their new tariffs of 145% and 125%, respectively. During this interim period, U.S. tariffs on Chinese goods will be 30% – a sharply higher amount than two months ago but at a...Read More