'Fast Money' traders talk market reaction to upcoming Fed meeting and impending tariff deadline

Market Sentiment & Setup - The market setup heading into the earnings season for the Mag Seven is not ideal, despite being heavily long in the space [1][2] - Concerns exist that the significant market run-up may have priced in positive earnings results already [2] - The VIX (Volatility Index) breaking 15 suggests a need for market hedges, indicating a feeling that the market has moved "too far too fast" [2] - The Mag 7 collectively surged over 40% since April lows, indicating concentrated money flow into that trade, raising the bar for earnings expectations [3] - The market is considered "full" after a mature intermediate advance of approximately 30% from the April low, with many stocks up 100% [10][11] Earnings & Guidance - Justification for the capital expenditure (capex) of companies is needed, with focus on when they will start to monetize those investments [4] - 80% of the S&P 500 companies have beaten earnings expectations this earning season, with a reasonably low bar [8] - Earnings season has been fine, with macro factors providing a boost with each trade deal [9] Company Specifics (Alphabet/Google) - Alphabet's earnings were good, alleviating concerns about the existential threat to search from AI, but the stock only held onto 1% of its gains on the day [5][6] - Google's ad search was up 12%, beating expectations, and their core search business also exceeded expectations [8] - There is a sentiment that Google may not win the battle of the AI search game, while others feel more positive due to Gemini 2.5 [7] Market Correction & Strategy - The market is due for a normative correction after a 3-4 month move, suggesting a time to reduce exposure generally [13] - Potential scenarios include a 3-4% spike followed by being "even more stretched" or a correction/selloff of 3-9% [12][13]