US tech earnings, and Powell not for cutting

Описание: Ira Epstein of Linn & Associates highlights a pivotal shift in monetary policy, expressing the view that the final rate cut by Chair Powell is likely behind us, with no further moves expected under his leadership. Epstein notes market resilience in digesting the impacts of tariffs and government shutdowns. However, the prospect of another US government shutdown looms, which Epstein states could stall economic reports and create uncertainty, limiting any central bank action. According to Epstein, the most significant market driver currently is the weakening US dollar, which he considers a calculated move by the Trump administration to maintain a stable, but not strong, currency. This trend supports rallies in metals and commodities, including gold and silver, as well as providing some backing to grain and energy markets.

On gold, Epstein maintains that ongoing price increases have taken many investors by surprise, but he asserts the bullish trend began over a year ago, bolstered by policy shifts and global macroeconomic cycles. He suggests using call options rather than futures to gain exposure, due to the potential for sharp corrections.

Turning to earnings, Epstein references results from Microsoft (NASADAQ: MSFT), Meta (NASDAQ: META), and Tesla (NASDAQ: TSLA), underlining aggressive AI-driven capital expenditures. AI adoption is described as both disruptive to labour and a significant driver of future job creation, ushering in a new phase of corporate efficiency and strategic competition.