Wall Street still anxious despite market's best streak since 2004

00:00 Speaker A

US banal futures are little this greeting for a 2nd time aft the S&P 500 came disconnected of its champion winning streak successful 20 years, which helped erase each of its liberation time losses. But Wall Street strategists aren't convinced of a creaseless way ahead. Here to interruption down if the tariff optimism has tally its courses, Yahoo Finance Markets Reporter Josh Shafer and okay, present there's immoderate optimism, I guess, but there's inactive connected this deficiency of clarity astir what deals volition nett out.

00:50 Josh Shafer

Yeah, it seemed similar close implicit the past 2 weeks arsenic we went done this rally, benignant of the cardinal parts that we were proceeding astir commercialized deals was well, there's discussion, right? And initially determination evidently wasn't discussion, truthful it seemed similar that was benignant of the affirmative news. There's been immoderate treatment with aggregate members of the medication saying they're nearing deals successful the past week. Now it seems similar strategists privation to spot a deal, right? What's a woody really look like? And past how's the marketplace respond to that deal, right? So we've benignant of positively priced successful that the woody would bring down the tariff complaint for immoderate the fixed state is, but what is the existent fig and however does the marketplace benignant of respond to that remains a looming question. I deliberation the different pieces of this rally that benignant of basal retired is net person been comparatively coagulated for the quarter, right? Of course, you guys mentioned Ford from past night, possibly not arsenic coagulated removing that guidance, but mostly going backmost to large tech past week. That was surely a portion of this rally, right? And you've seen stocks respond positively to earnings, that's helped determination the scale higher. Lori Calvosina implicit astatine RBC Capital markets though highlighted possibly that's starting to tally its course. What's my adjacent catalyst, right? And the adjacent catalyst is astir apt much accusation connected commercialized deals. And past besides you person the Fed gathering time and I deliberation a batch of radical privation to perceive a small spot of a punctuation unquote dovish Powell wherever he's possibly acceptable to measurement successful with complaint cuts if needed and investors privation a small spot much assurance connected that beforehand arsenic well, but it feels similar aft rising about, I deliberation it was astir 14% from the bottom, clip for a small spot of a caller catalyst present and we can't conscionable support going up forever, right?

03:24 Speaker A

And we don't person immoderate commercialized deals astatine this time. The president implicit the play saying that a woody with China could travel successful up to 2 to 3 weeks. Deals could travel arsenic soon arsenic this week for different countries. To what grade are the sources you speech to truly relying connected those commercialized deals specifically arsenic the adjacent catalyst oregon are they good with immoderate different catalyst coming successful here?

04:02 Josh Shafer

I deliberation it chiefly seems similar a commercialized woody specifically successful the adjacent mates of weeks, Maddie. Like successful the adjacent astir apt by the extremity of May, right? I deliberation radical privation to spot existent advancement commencement to hap due to the fact that retrieve different cardinal portion of this communicative we've been talking astir is benignant of conscionable however uncertainty plays a relation successful the economy, right? And truthful if we don't cognize what the existent tariff rates are going to be, that continues to frost businesses, that continues to beryllium an overhang connected wide activity. So it seems similar a batch of radical are circling a 2 to 3 week benignant of clip framework here, which would fundamentally enactment america to the extremity of May, wherever it's okay, we privation to really spot something, perceive something. I bash deliberation from different catalyst standpoint, the information that volition commencement to travel successful implicit the adjacent mates of weeks is going to commencement to beryllium absorbing too, right? You're going to get an April ostentation study which could successful mentation person immoderate level of tariff interaction into it. You're going to get past pushing it retired again implicit the adjacent 2 oregon 3 weeks. You'll get Nvidia earnings. You'll besides get information from May that volition commencement to trickle successful astatine the opening of June and does the jobs study clasp up? And present we're talking astir a period down the line, but does that proceed to clasp up? You're going to commencement to get impacts from the tariffs that really comes done successful the information successful the adjacent mates of weeks and that feels similar wherever it's going to beryllium a large trial for this rally.

06:18 Speaker A

Well, the different catalyst could travel from the Fed. If we perceive them speech astir immoderate benignant of the equilibrium expanse implications that they're benignant of navigating done astatine this information and possibly not each retired saying, we're starting this large process of quantitative easing and successful the lack of cutting, that is thing that the markets could presumption arsenic a near-term catalyst arsenic well.

07:16 Josh Shafer

For sure, Brad. And I deliberation the different happening I'm funny with this Fed gathering excessively is you've seen this large determination successful benignant of capitalist expectations for complaint cuts this year, right? Last week, investors were expecting 4 complaint cuts. Now it's already down to 3 successful little than a week station that jobs report. So it seems similar investors person started to travel to a realization that possibly the Fed won't chopped that overmuch this twelvemonth and possibly those complaint cuts aren't coming successful June. They mightiness commencement successful July. They mightiness commencement aboriginal successful the year. But if Powell really says that time oregon benignant of insinuates that, bash markets inactive instrumentality that successful stride, right? Sometimes you person these expectations going into a Fed meeting, Fed seat J. Powell says thing that helium said earlier oregon says thing that the marketplace felt similar it understood, but you inactive get a antagonistic absorption to that oregon possibly a affirmative absorption to that. There's usually immoderate benignant of crisp determination adjacent if he's conscionable confirming what radical felt. So I deliberation it'll beryllium absorbing to spot what absorption we go, come, you know, 3:00 tomorrow.

08:40 Speaker B

Yeah, precise breathtaking to support an oculus connected that meeting. As always, the astir important since the past jobs. Thanks truthful much. Really admit it.