Shah: It's very likely we will see another rate cut tomorrow

Federal Reserve Rate Cut Expectations - The market is pricing in a 90% chance of an upcoming Fed rate cut, with expectations of a hawkish cut [1][2][3] - The Fed is likely to take a step back to assess the economy, labor market, and inflationary pressures, anticipating at least two cuts next year to approach a neutral rate [4][5] Market Outlook and Fed Leadership - The potential new Fed chair is expected to be more dovish, influencing market expectations for additional rate cuts despite a positive economic outlook [6][7] - The market is navigating the implications of the new Fed leadership and how it may affect the overall monetary policy stance [9] MAG 7 Companies and Nvidia - The MAG 7 companies maintain a positive outlook despite market volatility, with Nvidia's recent deal in China providing an earnings boost [10][11] - The long-term narrative for the MAG 7 and AI trade focuses on productivity gains, despite short-term market stresses [11][12] AI Impact on Industries - AI is projected to deliver significant savings, with estimates suggesting that a 1% reduction in labor costs could translate to a 2% tailwind for S&P 500 EPS, particularly benefiting the healthcare sector [13][14] - Companies across various sectors are expected to adopt AI, leading to productivity benefits, although the timing of these impacts remains uncertain [15]