Latest / Markets with Megan: A Quick Financial Markets Update / What's Driving the Markets? | Episode 183 | 10-25-24

Transcript

What's Driving the Markets? | Episode 183 | 10-25-24 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan Horneman: I know we typically start off most of these podcasts with just some economic data.
• 0:04
  Megan Horneman: We typically focus on one specific piece of data, but today it's Friday, october the 25th, and we've seen the markets getting weak here recently, and today we're seeing a bit of a sell off in the market.
• 0:16
  Megan Horneman: So we just, instead of focusing on one key economic piece of data, we thought we would discuss some of the different things that we saw today and what we're seeing in the markets.
• 0:24
  Megan Horneman: Remember, we're very close to the presidential election.
• 0:27
  Megan Horneman: There's a lot of anxiety and uncertainty around that, but so we think the markets really don't have a whole ton of direction aside from earnings, and what we saw this morning was we got some pretty negative news out of one of the regional banks, new York Community Bank Corp, and we saw that they missed their earnings expectations and they basically said they're not even gonna see a profit until 2026.
• 0:51
  Megan Horneman: So what this did is it brought back some of that anxiety around the regional banks.
• 0:56
  Megan Horneman: It's something that we've mentioned is not necessarily behind us.
• 0:59
  Megan Horneman: It's been on the back burner for quite some time, but it is a risk that's still out there and we understand that, with the Fed cutting interest rates, it does take some of that risk off the table, but it doesn't completely eliminate it.
• 1:12
  Megan Horneman: So we think the regional banks this coming back is just another reason for people to take some profits off the table.
• 1:20
  Megan Horneman: And then we got consumer confidence today.
• 1:22
  Megan Horneman: That was much better than expected.
• 1:24
  Megan Horneman: There's basically a six-month high, and what does that mean?
• 1:27
  Megan Horneman: That means that if consumers are getting more confident because the Fed cut interest rates, there's a chance they may continue to spend, and if they continue to spend, that's a recession risk.
• 1:36
  Megan Horneman: I mean I'm sorry, an inflation risk.
• 1:38
  Megan Horneman: So when we look at what we're seeing in the market today, we're seeing interest rates higher.
• 1:42
  Megan Horneman: Equity markets don't necessarily like that either, so we're seeing equity markets down today.
• 1:51
  Megan Horneman: Now we'll be back next week.
• 1:51
  Megan Horneman: Next week we'll pick up some more from an economic calendar perspective and we'll be back as well to discuss some of the things in the following week that we see with the presidential election, as well as what happens with the congressional elections as well.
• 2:02
  Megan Horneman: If you like this podcast, please subscribe, hit that alarm bell, share with your friends, family and colleagues, and then, if you'd like some of our history of our podcast, some of the ones we've recorded already, you can go to marketswithmegan.
• 2:15
  Megan Horneman: fm.
• 2:16
  Megan Horneman: Thank you.