

Closing Bell: June's Seasonal Setup, The Fed's Next Move 6/2/25
Jun 2, 2025
Lori Calvacina, Head of U.S. Equity Strategy at RBC, and Jeff DeGraff, Chairman of Renaissance Macro Research, bring their expertise to the table. They dive into U.S.-China trade tensions and their market implications, shedding light on investor sentiment. The duo analyzes the negative impact of steel tariffs on automakers like Ford and GM and discusses the Federal Reserve's potential reactions to economic indicators. They also explore the seasonal stock trends and the recent dynamics between stock and bond markets, offering insights for savvy investors.
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Episode notes
Market Priced In Trade Optimism
- The market has already priced in economic improvements from trade de-escalation rapidly.
- Current valuations suggest the S&P 500 is near fair value with little upside left without further growth.
Buy Opportunities Amid Tariff Noise
- Use market dips caused by tariff fears as buying opportunities for quality stocks.
- Consider long-term impacts of AI that may offset negative margin effects of tariffs.
Alphabet's Hidden AI Value
- Alphabet's AI enhancements to search are incremental and additive, not cannibalizing core business.
- Market undervalues Alphabet’s diverse assets and growth potential amid legal risks.