Bloomberg Surveillance Bloomberg Surveillance TV: October 8th, 2025
Oct 8, 2025
Julian Emanuel, Chief Equity & Quantitative Strategist at Evercore ISI, shares insights on the S&P 500 rally and the 30% chance of hitting 9,000, discussing valuation dynamics and tech market contrasts with the late 1990s. Gregory Daco, Chief Economist at EY Parthenon, analyzes macroeconomic signals, indicating that while the labor market cools, AI-driven investments sustain GDP growth. They dive into Fed policy implications, tariff influences on inflation, and the risks of asset bubbles versus the need for rate cuts.
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Stronger Balance Sheets Fuel Larger Rally
- Julian Emanuel argues current rally can still extend because balance sheets are stronger than in the 1990s and AI-driven adoption is broadening market participation.
- He warns cross-shareholdings and corporate actions could inflate valuations into a larger bubble if liquidity and enthusiasm persist.
Stay Invested But Watch The Fed
- Emanuel says investors should remain invested even as valuations are challenging, because cyclical dips haven't ended the structural bull market yet.
- He recommends staying positioned for further upside while monitoring Fed hostility as the key risk to the cycle.
Breadth Beyond Mega Tech
- Emanuel highlights breadth: advancers outpace decliners daily, so the rally isn't solely concentrated in headline tech names.
- He notes adopters and adapters are driving revenue, not just cost savings, broadening the market's internal strength.