Global equities are surging, fueled by optimism over potential U.S. trade deals, especially after a pact with Japan. Analysts discuss reasons for the bullish market, pointing to strong earnings and a record high in world stocks. There's also a deep dive into the labor market and inflation dynamics as economic complexities unfold. As tariffs loom, insights into sectors like healthcare and technology suggest cautious optimism is key for investors navigating this volatile landscape.
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insights INSIGHT
Equity Market Dynamics
The U.S. equity market still holds risk premium despite rallying, indicating room for upward movement as fear subsides.
Concentration risks remain high with top tech stocks dominating, while small caps offer diversification potential amid earnings growth.
volunteer_activism ADVICE
Investment Discipline Advice
Stick with high-quality stocks even during volatile periods, focusing on long-term fundamentals rather than market targets.
Look for broader earnings growth and keep an eye on financial and small-cap sectors for potential value.
insights INSIGHT
Tariffs and AI Productivity Insights
Tariffs act as a tax that likely causes higher prices for consumers rather than hurting business margins.
Productivity gains from AI remain speculative and uneven, with benefits likely concentrated among capital owners.
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Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Surveillance hosted by Tom Keene & Paul SweeneyJuly 24th, 2025 Featuring: 1) Stuart Kaiser, Head: US Equity Trading Strategy at Citi, joins for an extended discussion about the equity rally and fundamentals driving markets higher. Global equities continued their rally as bulls drew fresh conviction from signs the US may strike more trade deals soon after clinching a pact with Japan. 2) Brian Belski, Chief Investment Strategist at BMO Capital Markets, brings us into the market open and talks about why he's remained bullish amid so much policy uncertainty. A gauge of the world’s stocks hit a new record high, and Europe’s Stoxx 600 index advanced after a clutch of strong earnings and reports the US is closing in on an agreement with the European Union. 3) Michael Feroli, Chief U.S. Economist at JPMorgan, talks about the labor market, inflation, and Fed independence. President Trump will visit the Federal Reserve to tour a construction site he has criticized for cost overruns. Trump has been attacking Fed Chair Jerome Powell for not cutting rates and has criticized the Fed's $2.5 billion renovation project. 4) Natasha Sarin, President and co-founder at Yale Budget Lab, talks about their most recent findings from the YBL on the state of US tariffs. President Trump suggested that he would not go below 15% as he sets reciprocal tariff rates ahead of an Aug. 1 deadline. The president has left the door open for countries to make agreements that could lower the tariff rates, and some countries are aiming to bring down their tariff rates to the 15% level. 5) Lisa Mateo joins with the latest headlines in newspapers across the US, including a WSJ report on NBCUniversal reportedly discussing launching a sports cable network and USA Today's report on how hotter summers have travelers ditching the beach for "coolcations."
Bloomberg Surveillance