

Markets Dip on Mixed US Eco Data, Waning Fed Bets
7 snips Jul 16, 2025
Chuck Cumello, President and CEO at Essex Financial Services, discusses the recent dip in Asian stocks influenced by mixed U.S. economic data. He highlights how rising inflation concerns and Fed rate expectations are causing volatility in the markets. The episode explores Nvidia and AMD's new permissions to export chips to China, indicating a positive shift for the semiconductor sector. Cumello also analyzes investment strategies amidst these market fluctuations and the growing demand for AI technology in the tech landscape.
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Client Market Whipsaw Experience
- Clients experienced market swings from a 20% sell-off to a 26% gain since April lows.
- Most stayed the course with handholding and focus on long-term outlook despite extreme political views.
Tariffs Cause Inflation but Firms Adapt
- Tariffs act like a tax and are naturally inflationary, but companies adapt to mitigate impacts.
- Inflation is a key risk affecting rates, with offsetting factors tempering runaway increases.
Fed Rate Decisions Require Caution
- Expect the Fed to hold rates without rushing cuts until clear inflation-proof data emerges.
- Avoid premature rate cuts that could force later hikes and bond market rejection.