Closing Bell Closing Bell: What’s Next for the Rally? 7/29/25
Jul 29, 2025
Adam Parker, a CNBC contributor from Trivariate Research, and Mark Okada, Co-founder and CEO of Sycamore Tree Capital, dive into the future of the stock market rally. They explore the crucial factors driving market sentiment, including trade dynamics and institutional investor behavior. Additionally, they share insights into the credit market, highlighting shifting investor strategies amid economic uncertainties. The conversation also touches on the unique challenges facing specific stocks and the potential rise of bonds as a go-to investment choice.
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Institutional Investors Downplay Tariffs
- Institutional investors have largely moved past worries about tariffs, seeing them as less impactful on S&P earnings than previously feared.
- Market pricing reflects expectations of tariffs being a smaller drag on earnings, with China-related issues still the biggest risk.
Retail Drives Speculative Surge
- This summer's speculative surge is largely driven by retail traders pushing meme and high-beta stocks higher.
- Recent selling marks possibly a pause or reset before the next tech earnings and Federal Reserve meeting.
Valuation Limits and Earnings Growth
- Market valuation isn't an effective short-term timing tool but offers intermediate to long-term indication.
- Earnings are rising, and quality mega cap tech stocks remain favored despite high valuations.