Warsh Out in Bonds + CME Group's Tim McCourt on Single Stock Futures

**Guy Adami** (0:00)
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**Dan Nathan** (1:06)
iConnections is the largest membership-only platform for the alternative investment industry, bringing together thousands of fund managers and allocators in one powerful hub. iConnections reimagines how the industry connects through its digital offerings and premier in-person events, empowering allocators and managers to meet, build relationships, and do business anytime, anywhere. To explore more about iConnections, its events, and gain access to the members-only platform, visit iconnections.io. Welcome to Risk Reversal Podcast. I'm Dan Nathan. That is Guy, Christopher Adami. Hi, Guy.

**Guy Adami** (1:36)
Hello, Dan.

**Dan Nathan** (1:37)
All right. You and I are recording this. It's Thursday afternoon. We're seeing some very interesting action by some of the biggest names in the market. We have Microsoft up 15 percent post earnings. We have Facebook down about nine percent post earnings. We have a huge bounce in semis and memory. And as you would expect, Guy, we have software going the opposite way. We have market digesting a little bit of what Fed Chair Warsh had to say or what he didn't have to say. You have some thoughts about what's going on in Japan. We'll mention on the currency front, maybe, maybe not.
And then stick around for a conversation that I had in Chicago. This would be on Wednesday with Tim McCourt from CME Group. He is the Senior Managing Director, Global Head of Equity, FX and Alternative Products. We talked about single stock futures guy that they just launched. I want to say a few days ago, a week ago, I find this product really interesting. And Tim breaks some stuff down why investors, traders might be interested in this product relative to trading options and some other futures. So great stuff there.

**Guy Adami** (2:43)
Yeah. Once again, CME ahead of the curve. And there is a lot and we'll get right into it because what we're seeing is a continuation of a theme we've been talking about now for the last couple months. These single stock moves, the volatility in single stock names, again, over the last couple months has been historic. I've never seen anything like it. And I'm not talking about one or 2% moves. I'm talking about 8 to 10% moves both up and down a couple of times a week now for the better part of a couple of months. And there's nothing normal about that. Now today, as you mentioned, it's Thursday afternoon. Today happens to be one of the days we're seeing significant moves to the upside. But we've also seen significant moves to the downside. And I think this, to me, suggests more of a topping formation in the market than a bottoming formation.

**Dan Nathan** (3:27)
Yeah, I'm in that camp. I mean, I'm just looking at my FactSet machine here, Guy. I see Microsoft up 15%.
I see Western Digital up 13%. I see Sandisk up 23%. I see Applied Materials up 13%. I mean, just look at the Neoclouds. CoreWeave is up 23%. Nebius is up 28%. I mean, this price action, if it doesn't scream bubble, even with a lot of these stocks up 30%, 40% from their recent all-time highs, I don't know what does.

**Guy Adami** (4:00)
CoreWeave is a great example. You think about it. It's up 22% today. It's now a $74 stock. And I'm not picking on CoreWeave at all. But go back in time. I mean, in May, I think this was a $138 stock. So we have seen moves like this before. And that one specifically has been a series of lower highs and lower lows. If you're looking for some good news, maybe it comes in the form of we just traded down the levels we saw in March. But this is again, somewhat anecdotal. All these other names you brought up, the same type of things. A 20% move in Sandisk is huge. But over the last year, year and a half, it looks like a blip on the chart. Again, that speaks to what I think is sort of an unhealthy market formation or structure right now.