Let's get to the outlook for the markets now with stocks taking a little bit of a leg lower. Yang Yu Ma is here PNC asset management chief investment strategist. Welcome back.It's nice to have you. So, how vulnerable do you do you see this market right now. >> I wouldn't say the market is extremely vulnerable.I think the action we're seeing right now is healthy push and pull uh some pullbacks in the market, some resetting, some assessment of the actual growth trends that we're seeing and who can capitalize ...

Economic Outlook - The labor market is showing signs of softness, with the ADP employment report indicating job declines in three out of the last four months, suggesting a potential weakening trend [2][3] - Despite labor market concerns, the overall economy appears to be holding up well, with GDP revisions showing stronger than expected growth [8] Federal Reserve Policy - There is significant support among Federal Reserve officials for potential rate cuts, with more than half of the committee members anticipating two cuts by the end of the year [5][6] - The Fed funds futures market indicates nearly 100% likelihood of a rate cut later this month, reflecting market expectations [6] - The Fed is cautious about cutting rates too aggressively due to high inflation and the current economic growth, suggesting a measured approach to future rate decisions [14][15] Market Reactions - The market is pricing in almost two rate cuts this year and a future rate of less than 3%, which may be overly aggressive given the current economic conditions [12][13] - Some Fed officials have expressed caution regarding the inflation outlook, indicating a need for careful monitoring of economic indicators before making further cuts [10][14]

Group 1 - The Federal Reserve is expected to cut its key interest rate by 25 basis points on September 17, with most economists anticipating one further cut next quarter due to labor market softness overshadowing inflation risks [1][2] - Markets have fully priced in a September cut and now expect three reductions this year, up from two just weeks ago, indicating a shift in economic outlook [2] - A significant majority of economists predict a 25 basis point cut to a range of 4.00%-4.25%, marking the first reduction of the year [2][3] Group 2 - Economists have noted a persistent slowdown in labor demand, suggesting that the Fed should ease policy to support the labor market despite current inflation levels [3] - There is potential for dissent among Fed board members regarding the size of the rate cut, with some analysts suggesting a larger cut or holding rates steady [4][5] - A majority of economists expect a 50 basis point cut by the end of 2025, with a notable increase in those predicting 75 basis points cuts by year-end [5] Group 3 - Over 60% of economists believe that surging inflation or a combination of inflation with rising unemployment is more likely in the coming year [6]