Squawk on the Street SOTS 2ND Hour More record highs on the S&P and Nasdaq after new inflation data 9/11/25
Sep 11, 2025
Howard Lutnick, Commerce Secretary and former CEO of Cantor Fitzgerald, reflects on the impact of 9/11 on business and shares his optimism on job growth amid trade negotiations. Lori Calvasina, RBC's Head of Equity Strategy, dives deep into the latest inflation data and its effects on equities and jobless claims. They explore the challenges of the labor market, the influence of AI on job skills, and the economic implications of upcoming Federal Reserve decisions. This engaging discussion intertwines personal narratives with critical financial insights.
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Bonds Signal Fed Is Watching Jobs
- Bond market rallied after jobless claims spiked, signaling the Fed should worry more about jobs than inflation.
- That reaction increased expectations that the Fed will still cut despite sticky inflation signs.
Market Rally Balances Inflation And Fed Hopes
- Equities are rising as investors price in Fed cuts and weigh inflation pressures that aren't yet 'out of hand.'
- Markets are balancing PE multiple constraints with household equity allocations as a tailwind.
Don’t Assume Cuts Guarantee Gains
- Remain cautious about seasonality and peak valuations as cuts are priced in but may not be needed.
- Evaluate whether the expected Fed cuts are already baked into stock prices before increasing exposure.