Bloomberg Surveillance Markets and a Possible September Rate Cut
Aug 4, 2025
Lori Calvasina, Head of US Equity Strategy at RBC Capital Markets, discusses her insights on the S&P target and the current market risks. She unpacks the implications of dismal US jobs data and how it fuels speculation around a September rate cut by the Federal Reserve. The conversation highlights the trustworthiness of US government data and explores how investors are adjusting strategies amidst market fluctuations. Lori also emphasizes the importance of diversification, especially as tech dominance and high valuations raise concerns.
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Mixed Earnings With Rising Uncertainty
- Earnings season shows decent results but rising uncertainty clouds outlook.
- Demand signals remain mixed, with tech holding strong on AI but broader confusion persists.
Consumer Spending Shows Signs of Stress
- Consumer spending composition shows stress amid sustained overall spending.
- Surveys reveal declining sentiment, especially among lower-income and less educated groups.
Small Caps and Fed Rate Outlook
- Small caps struggle with flat or slowing job growth but may revive with potential Fed rate cuts.
- Current sentiment and Fed expectations keep small caps in a neutral position.