Stocks (^gspc, ^i tocie, ^dji) have been relieved in a much higher than expected ISM service report and comments from Commerce Secretary Howard Lutnick on the tariffs. However, volatility remains a concern as the S&P 500 declines.
Drew Matus, chief market strategist at Metropolitan Life Investment Management, and Tim Hayes, chief global investment strategist at Ned Davis Research, joined Catalysts hosting Madison Mills and Seana Smith to discuss the latest developments in the economy.
“If we look at the ISM that just came out, we're seeing growth is OK, inflation is a bit sticky, and that's what we know.”
“The wildcard is the tariff situation and the impact it has,” he added. “And I think the biggest impact of tariffs is actually not inflation; it could be growth.”
Hayes noted that regarding market movements and pessimistic consumer sentiment, “Most stocks are still above their 200-day moving average globally, and some markets like Europe are very close to new highs, so I think that sentiment does not align with the facts our metrics tell us.”
He added: “This kind of pessimism is much bigger than what we usually see in corrections…I think emotions will go back to what fundamentals tell us.”
To see more expert insights and analysis on the latest market actions, see more catalysts here.
This article was written by Josh Lynch
