Speaking to ET Now, market strategist Peter McGuire said, “The Fed might not wait for the perfect inflation numbers before slashing rates. The upcoming non-farm payroll report in early September will give us a clearer indication of what could happen at the Fed’s meeting on September 16-17.” He added that while some are predicting a 25 or 50 basis point cut, nothing is guaranteed yet.
Tariffs remain a key concern for investors. McGuire explained, “The question is who will absorb these costs—the country or the consumer? Businesses are navigating whether to maintain pricing or absorb some costs to keep goods affordable. It’s a complex situation, and we’re still in the early stages.”
Despite these uncertainties, risk appetite on Wall Street appears strong. “It’s very difficult to be short at the moment,” McGuire told ET Now. “The momentum in equities is very strong. If a rate cut happens in September, we could see this uplift continue into October.” He noted that Fed opinions are divided, with some members even hinting at potential rate hikes.
Beyond equities, investors are eyeing asset classes like gold and silver. McGuire said, “A rate cut would likely soften the US dollar and push precious metals toward record levels. Gold and silver are already showing strong gains, and this trend could continue into the holiday season.”
Commodity markets are also in focus. McGuire told ET Now, “Chinese demand for industrial metals is very strong. Copper, aluminum, and tin are all holding firm. Meanwhile, oil prices have risen for the first time in three weeks amid ongoing uncertainty in Russia-Ukraine peace talks and global supply adjustments. Any resolution there or continued oversupply could benefit consumers and moderate energy costs.”Overall, McGuire emphasized the dynamic nature of the markets. “It’s a rapidly evolving environment,” he said. “Investors need to stay alert, but current conditions are supportive for equities and metals in the near term.”