Squawk on the Street SOTS 2nd Hour: The Fed Playbook - What Comes Next, & LIVE: Bullish, Expedia CEOs 9/18/25
4 snips
Sep 18, 2025 
Savita Subramanian, head of U.S. equity strategy at Bank of America, shares insights on market trends following a recent Fed decision, focusing on sector outlooks. Patrick Moorhead, CEO at Moor Insights & Strategy, discusses NVIDIA's monumental investment in Intel, exploring implications for chipmakers. The conversation also dives into Bullish’s first public earnings and the evolving landscape of travel with Expedia's CEO, who reveals how AI is transforming customer experiences and enhancing business strategies.
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Earnings Broadening Beyond Big Tech
- Bank of America sees broadening earnings beyond Big Tech as profits growth accelerates across many sectors.
- Savita Subramanian believes the S&P rally can continue even without more short-end Fed cuts if earnings broaden.
Favor Long-End Risk And Cyclicals
- Focus on the long end of the Treasury curve because it matters more for S&P valuations than short-term Fed funds.
- Rotate into materials, energy, and industrials to play a manufacturing and commodity-led cyclical bounce.
When Yields Really Threaten Stocks
- Historical quant work suggests U.S. equity multiples only compress massively if yields approach around 7%.
- A steepening curve driven by stronger growth can be constructive for stocks even if it hurts bonds.