Josh Brown, CEO of Ritholtz Wealth Management, said Tuesday the stock market is being dictated by two factors — the artificial intelligence investing theme and the strength of the U.S. consumer — and both are in solid place right now. "If you understand that the AI story and the U.S. consumer are the only things that matter, you could stop wasting your time reading a lot of other data and focusing on a lot of other reports," Brown said on CNBC's " Halftime Report ." His comment came after data showed consumer spending retreated more than expected in May. Sales dipped 0.9% on the month, worse than the Dow Jones forecast for a 0.6% fall. Still, Brown believes the U.S. consumer, which he thinks is the most important engine of global growth, remains on solid footing despite the weak data. .SPX YTD mountain S & P 500 "The consumer is fine and the 'Mag 7' AI theme is intact. If I told you nothing else, that would be enough to understand why we're on the verge of a new record high," Brown said. The S & P 500 has fully made back the losses during April's tariff shock and is up about 2% on the year. The equity benchmark is now only 2.4% below its record high reached in February. Investors are also waiting for the Federal Reserve's policy decision Wednesday. The central bank is largely expected to hold rates steady. DISCLOSURES: All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. JOSH BROWN IS THE CEO OF RITHOLTZ WEALTH MANAGEMENT AND MAY MAINTAIN A SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
