Squawk on the Street Squawk on the Street 2ND Hour 8/18/25
Aug 18, 2025
Michael O'Hanlon, the Foreign Policy Program Director of Research at the Brookings Institution, delves into the complexities of the Ukraine-Russia conflict and the evolving strategies of European nations. He discusses potential ceasefires, the impact of sanctions, and the tug-of-war between economic pressures and diplomatic efforts. Additionally, the conversation shifts to the intrigue of AI's influence on investment trends and the upcoming earnings from major retailers, all while navigating the delicate dynamics of today's market landscape.
AI Snips
Chapters
Transcript
Episode notes
Builders Still Struggle Despite Rate Dip
- Builder sentiment fell in August despite slight mortgage rate easing, showing on-the-ground buyers remain constrained.
- Builders rely heavily on incentives and price cuts to drive demand as traffic stays weak.
Position For Dovish Hints, Not Guaranteed Cuts
- Expect Jackson Hole to require dovish language rather than explicit cut promises; plan portfolios for potential short-term chop.
- Position for tech-led upside and rotate selectively into areas like small caps if Powell hints at insurance cuts.
AI Remains The Bull Market Engine
- AI and technology are the dominant bull-market theme driving earnings momentum and index gains.
- High valuations raise the bar for positive surprises, but earnings strength supports the uptrend.