Wall Street Frontline｜Peter Tuchman: Clarity out of the Fed

（原标题：Wall Street Frontline｜Peter Tuchman: Clarity out of the Fed will be important for the market in June）

After stock market strong gains in May, all three indexes have shown some volatility. In the week ending on May 31st, all three major indexes recorded losses for this week. Investors on the Wall Street start to worry that rising volatility might signal a slowing of the market rally.

On the other hand, Nvidia(NVDA) has garnered significant attention. The stock has been hitting new heights following the release of its earnings reports, reaching a market value of an impressive $2.72 trillion, just shy of the top spot held by Apple, at $2.93 trillion. Nvidia’s CEO Jensen Huang's net worth has surpassed a $100 billion for the first time, placing him 15th on the global billionaire list. On the last trading day of May, Nvidia’s stock price fell but remained near a record high as it approached Apple’s market cap.

Today（May 31st), we invited Peter Tuchman, trader at New York Stock Exchange, to join us to talk about the recent trends in stock market and the future of Nvidia.

Wall Street Frontline: Can you give us an overview of this week’s stock market? What are the highlights? What has happened?

Peter Tuchman: Absolutely. Look, it's been a wild and crazy week. Obviously, we've had a really reasonable May. You know, a lot of the movement in the market has been fueled by a lot of Nvidia and Nvidia earnings. It was a big part of the last couple of weeks. And there's been a lot of big follows through as far as that goes. We've seen a nice rally in the Russell, the small-cap, mid-cap. So that shows the breadth. We had a 1% rally yesterday. Advanced declines were in a solid position. So that shows a broader breadth to the rally.

Although we have had a couple of down days in the Dow, which is a less significant index, right? Because there was very one or two stocks going down 9% one day. There were a number of other names that took that one down. But you know, there's the old adage, sell in May and go away. That was not the case this month. May was a super solid month. We had good earnings. So, we forged higher.

There was a lot of question whether the interest rate story is gonna to be clear, you know, whether they are going to have one cut, two cuts, whether they're in fact, maybe even be a raise. So, they didn't know that. So , there was a lot of dissent among the ranks within the Fed about clarity to us as investors, what they plan on doing. So, the couple of bumps in the road that we had during May were a function of that. But you know, for the week, we ended the week up solid. It is the end of the month, right? And that's significant.

Today was the MSCI global rebalance. That is a massive global index rebalance of 3,000-5,000 plus stocks. The largest global rebalance we have. And I traded it all day and we ended up posting $4 billion to buy. And that was a contributing factor to this massive rally that we had at the end of the day. I thought after a reasonable month, that we all gonna have a bit of a selling side on the close, people taking profits.

But it turned out that the enthusiasm for the market, whether it was some short covering, people sort of thinking that we were going to go down by the end of the day. Or the buy interest and the buy dollar notional value that came in in the last hour and a half of trading was significant. Rally the Dow up 500. The S&P up 46 handles in the last 15 minutes of trading.

Wall Street Frontline: So, everybody's talking about Nvidia, as you just talked about, right? Obviously, it's the star here. So how are traders at New York Stock Exchange reacting to Nvidia’s rapid ascent?

Peter Tuchman:  We don't trade Nvidia here. It's a Nasdaq stock. But if you just listen to me, look, I do a lot of work with Dan Ives. Dan Ives is the number one tech analyst in the world. In my opinion, we have a show together called Einstein and Ives. He's my go-to guy about Nvidia. And he's a lot smarter than I am. And he knows tech better than anyone. He's been touting and pounding the pavement about Nvidia for a long time.

Look, we watched Nvidia go in February 2023. It was trading at $108. In February 2024, it was trading at $960. That's a spectacular move. That really points at a major revolution in the tech sector. Trillions of dollars are going into that sector in a big way. And best of breed, the godfather of AI, Jensen, CEO of Nvidia, is leading the pack. So that's been huge. But then think about it. We ended the first quarter, best first quarter we've had since 2019. April was a bit of a rough month. We actually saw Nvidia go from $960 to $735. Now, while people started running for the hills, like, oh my God, it's the end of the world. The press, the media sort of talks about recession, depression, and all this. People should have been sitting there with a shopping list. And looking and realizing that Nvidia was not going down. It was just on sale for the month of April. And if they had bought the stock, liking the story, the people, the process, the product, right? That's what people do. Nothing changed overall in April about Nvidia. It was just the market. So they missed an opportunity.