Halftime Report Rethinking the AI Trade 9/5/25
Sep 5, 2025
Stephanie Link, an investment strategist, Jim Lebenthal, a contrarian investor, and Malcolm Etheridge, an investment portfolio manager, dive into the current dynamics of the AI chip market. They assess the recent fluctuations in NVIDIA's stock following disappointing job reports and explore Broadcom's soaring success after earnings. The trio discusses the Federal Reserve's interest rate policies and its impact on sectors like housing. They also evaluate Lululemon's challenges amidst fierce competition and share their latest portfolio moves, revealing strategic insights for investors.
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Episode notes
Soft Jobs Prompt Repricing
- The market pulled back modestly after a weak jobs report despite recent record highs in the S&P and Nasdaq.
- Bond yields fell sharply, signaling rising odds of Fed rate cuts and market re-pricing.
Bad News Is Still 'Good' For Cuts
- Jim Lebenthal argued weak jobs data increases the odds of Fed rate cuts but stressed underlying growth and employment remain reasonably strong.
- He warned markets will fret about stagflation short-term but fundamentals point to a solid end to the year.
Cooling Labor, But Not Collapse
- Stephanie Link sees mixed labor signals but expects two to three Fed cuts because the labor market is cooling, not collapsing.
- She highlighted strong services, business investment, and corporate profitability sustaining the economy.