Closing Bell Closing Bell: Gundlach’s First Take on the Fed & a Big Tech Set-Up. 10/29/25
Oct 29, 2025
In this discussion, guest Jeffrey Gundlach, founder of DoubleLine Capital, shares insights on the Fed's recent decision and its implications for stocks, emphasizing a need to reassess December rate-cut odds. Rob Sechan, from NewEdge Wealth, talks about big tech earnings, spotlighting Meta’s AI-driven ad strategies and Alphabet's cloud performance. CNBC's Julia Borsten highlights key metrics for Meta while the panel debates which tech giant has the most on the line, with Meta's future in the balance against evolving AI challenges.
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December Cut Is No Longer Assured
- Jay Powell stressed that a December cut is "far from" a foregone conclusion, shifting market probabilities.
- Jeffrey Gundlach says this reduces the odds of a December cut to about 50-50 and should materially reverse market pricing.
Two-Year Yield Anchors Fed Policy
- Gundlach notes the Fed tracks the two-year Treasury closely and that the yield relationship to Fed funds has tightened.
- He highlights a steepening yield curve as long rates rose even after cuts, implying different Fed-control dynamics across maturities.
Rebalance And Trim Gold At Peaks
- Gundlach recommends rebalancing after big moves and reducing gold exposure from peak levels.
- He suggests 10% gold, 5% commodities, 45% stocks, 25% bonds, and about 15% cash as a model allocation.