Motley Fool Money: Market Movers – Jerome Powell and Jensen Huang Released on March 21, 2025

Hosts: Dylan Lewis, Ricky Mulvey, Mary Long
Guests: Joe Cotillo (CEO of Sterling Infrastructure)

Introduction

In this episode of Motley Fool Money, hosts Dylan Lewis, Ricky Mulvey, and Mary Long delve into the impactful statements and strategies of two prominent figures: Jerome Powell, the Chair of the Federal Reserve, and Jensen Huang, CEO of Nvidia. The discussion spans economic outlooks, technological advancements, and earnings reports from key companies, providing investors with comprehensive insights into the current market landscape.

Economic Outlook and Federal Reserve Insights

Jerome Powell's Stance on the Economy and Interest Rates

Dylan Lewis opens the discussion by highlighting Jerome Powell's recent remarks on the economy, emphasizing the Federal Reserve's cautious stance amid ongoing uncertainties.

• Jason Moser notes, "[01:08] It's only March, but it sure feels like we've gotten a year's worth of volatility in the markets already."

Powell acknowledged the economy's robustness despite declining consumer sentiment. However, inflation remains persistent, leading to concerns about potential stagflation. The Fed is contemplating two to three rate cuts within the next 12 to 18 months, contingent on tariff developments and their economic impact.

• Mary Long (Addie) adds, "[03:06] The economy is slowing, they see that, but it's not like it's come into a standstill."

The hosts agree that businesses are becoming more cautious, reducing spending and delaying significant decisions, which in turn affects the broader economy.

Technological Advancements: Nvidia's Roadmap

Jensen Huang's Vision for Nvidia and AI Integration

Shifting focus to the tech sector, the discussion turns to Nvidia's latest developments under CEO Jensen Huang. The company recently unveiled its advancements at the GTC conference, positioning itself as a leader in AI and infrastructure projects.

• Jason Moser enthuses, "[04:36] Robotics was a key theme of the event... bringing AI into the physical world more."

Nvidia introduced the Vera Rubin system, featuring a custom CPU named Vera and a new GPU design called Rubin, set to double the performance of its previous Blackwell chips. These innovations are scheduled for release in the second half of 2026, underscoring Nvidia's commitment to maintaining its edge in AI technology.

• Addie highlights, "[06:43] Vera Rubin is going to be twice as fast as the CPU used in last year's Blackwell chips."

The hosts discuss the potential risks Nvidia faces if innovation stalls or if the AI market reaches saturation. Nonetheless, the consensus is that Nvidia continues to deliver impressive advancements, keeping investors optimistic about its future.

Company Earnings Review

FedEx: Navigating Tariff Impacts and Economic Uncertainty

FedEx reported flat revenues and stagnant growth, leading to a nearly 10% drop in shares.

• Addie explains, "[08:46] FedEx reported earnings that were okay on the surface... but the outlook is uncertain and it disappointed Wall Street."

Factors contributing to FedEx's performance include potential tariffs affecting import duties and fears of a recession reducing shipment volumes. An analyst from Loop Capital downgraded FedEx, labeling it a "really bad recession stock."

• Addie counters, "[12:56] Let me put it this way. It's a really good recession stock if you don't own it."

The hosts suggest that while short-term challenges persist, FedEx might be a viable long-term investment if investors maintain confidence in its strategic positioning.

Nike: Addressing Sales Declines Amid Tariff Concerns

Nike's shares fell approximately 6% following a reported decline in sales and earnings.

• Jason Moser states, "[13:22] The numbers certainly were not impressive... revenue of $11.3 billion was down 9% from a year ago."

Despite managing to stay within gross margin forecasts, Nike faces ongoing challenges from tariffs on imported goods. The new CEO, Elliot Hill, is tasked with reversing the downward trend and restoring investor confidence.

• Jason Moser shares, "[15:04] I still feel like there's a pretty attractive valuation here for such a powerful global brand."

The hosts discuss the potential for Nike to rebound through strategic leadership and sustained investment in its core business.

Accenture: Balancing Government Contracts with Market Fluctuations

Accenture's earnings revealed a stable performance, but concerns over government contracts loom.

• Addie observes, "[16:55] Accenture had a very decent quarter... but if they start getting crimped on what's a very stable and core part of the business, that flattish outlook then starts to look like it could be in jeopardy."

The consulting giant faces headwinds from government efficiency initiatives, which could impact a significant portion of its revenue. However, Accenture's growth in generative AI bookings and diversified service offerings provide a buffer against these challenges.

Interview Highlight: Sterling Infrastructure and Tariff Impacts

Joe Cotillo on Navigating Infrastructure Projects Amid Economic Shifts

In a featured interview, Joe Cotillo, CEO of Sterling Infrastructure, discusses the company's focus on preparing for major infrastructure projects amidst changing economic conditions and tariff uncertainties.

• Asit Sharma articulates, "[20:34] ...site selection, site development for mission critical type applications... battery plants, solar plants..."

Sterling Infrastructure has diversified its operations into e-infrastructure, transportation solutions, and building solutions, positioning itself for sustainable growth. Cotillo emphasizes the company's resilience in managing material costs and maintaining project timelines despite external challenges.

• Joe Cotillo remarks, "[26:37] The market doesn't like uncertainty and they're trying to figure it out... we've spent very little time internally worrying about the tariff impact on us."

The conversation underscores the importance of strategic planning and adaptability in maintaining operational efficiency and driving long-term success.

Market Insights and Stock Radar

BYD and Williams Sonoma: Investment Opportunities

The hosts conclude the episode by spotlighting stocks of interest:

• Mary Long recommends BYD, a Chinese electric vehicle company making strides in rapid charging technology, potentially challenging Tesla's market dominance.

  • Notable Quote: "[37:15] BYD as many people know, is a competitor to Tesla... it can charge an electrical vehicle in five minutes, which could be a possible game changer."

• Jason Moser highlights Williams Sonoma (WSM) for its strong brand portfolio and recent dividend increase, despite flat sales guidance and tariff concerns.

  • Notable Quote: "[37:57] Williams Sonoma... total return almost 900%... but stocks sold off on the report."

The hosts encourage investors to consider these stocks for their growth potential and strategic positioning within their respective industries.

Conclusion

This episode of Motley Fool Money offers a comprehensive analysis of current economic trends, technological advancements in AI, and detailed reviews of major company earnings. By examining the strategies of leadership figures like Jerome Powell and Jensen Huang, along with insights from industry experts like Joe Cotillo, listeners are equipped with valuable information to navigate the complexities of today's financial markets.

Notable Quotes:

• "[01:08] Jason Moser: It's only March, but it sure feels like we've gotten a year's worth of volatility in the markets already."
• "[03:06] Mary Long: The economy is slowing, they see that, but it's not like it's come into a standstill."
• "[04:36] Jason Moser: Robotics was a key theme of the event... bringing AI into the physical world more."
• "[12:56] Addie: Let me put it this way. It's a really good recession stock if you don't own it."
• "[37:15] Mary Long: BYD as many people know, is a competitor to Tesla... it can charge an electrical vehicle in five minutes, which could be a possible game changer."

This detailed summary captures the essence of the podcast episode, providing listeners with an in-depth understanding of the discussions on economic policies, technological innovations, and company performances without needing to listen to the full episode.