Investors should cheer for a slower-cutting Fed: Strategist

Liz Ann Sonders News

Investors should cheer for a slower-cutting Fed: Strategist
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Charles Schwab chief investment strategist Liz Ann Sonders joins Market Domination Overtime to discuss Tuesday's market movement (^DJI, ^IXIC, ^GSPC) ahead...

Sonders calls Nvidia the"poster child" for AI, and explains that the recent pullback in the technology sector is largely due to investors looking for revenue generation from capital expenditures spending. She believes that this issue will not be resolved after Nvidia reports earnings, yet after the earnings call, investors"might start to fill in some of the blanks given what Nvidia is going to say, especially as it relates to their outlook.

How are you factoring that in just how much of this excitement has already been priced at this point?Yeah, so I think we're at an interesting point as it relates to prospective fed policy. And I think an assumption about the FED and by the way, it's a counterfactual, you know, we can play armchair quarterback all we want and it would have been better had the FED moved in July.But the inflation data, even at this point doesn't yet suggest the need for the fed to move aggressively to have moved in July, which at the time would have been going against what in essence, they had been telegraphing.

And Powell did mention at Jackson Hole that the weakness that we have seen in the labor market is pretty much all they want to see and they want to prevent further weakness.

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