Squawk on the Street SOTS 2nd Hour: PCE Breakdown, Trump Tariffs Latest, & Moody's Chief Economist Talks GDP 9/26/25
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Sep 26, 2025 Guest Dan Greenhouse, Chief Strategist at Solis Alternative Asset Management, dives into the current market landscape, citing strong earnings and consumer spending as catalysts for a sustained rally. He also shares concerns about potential tariffs, especially in the chip and pharma sectors, discussing their disruptive effects. Furthermore, Mark Zandi, Moody's Chief Economist, provides insights on how a government shutdown could unexpectedly impact GDP growth, highlighting the risks stemming from wealth concentration and spending patterns.
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Focus On Fundamentals Not Noise
- Focus on economic fundamentals: strong data and corporate earnings underpin the rally, not just seasonal flows.
- Avoid overreacting to short-term headlines like shutdown talk; prioritize earnings and macro trends.
Markets Are Sanguine But Vulnerable
- Markets are sanguine about the next nine months, but risk remains given tariffs and hiring softness.
- Tailwinds like earnings and potential Fed cuts support equities, yet downside risks persist.
U.S. Lacks Sufficient Chip Capacity
- U.S. chip capacity is insufficient to fully de-risk reliance on foreign fabs, prompting policy discussions to incentivize domestic production.
- Taiwan foundries still lead on best-node manufacturing, leaving a gap U.S. policy aims to close.