Bloomberg Surveillance Traders Closely Watch Tax Bill and Jobs Data
Jul 2, 2025
Dan Ives, Global Head of Technology at Wedbush Securities, shares insights on Tesla's fluctuating sales and the growing influence of AI in the tech sector. Meanwhile, Maya MacGuineas, President of the Committee for a Responsible Federal Budget, discusses the potential ramifications of President Trump's tax legislation on U.S. debt and the deficit. The conversation dives into market uncertainties and the strategic pivots of major players like Apple and Microsoft, all while highlighting the complex landscape of fiscal responsibility and economic growth.
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Underappreciated Upside Risk in Equities
- Markets see an underappreciated upside risk in equities as tariff policies become clear.
- Earnings estimates are $10 to $12 lower than they could be without tariff uncertainties.
Fixed Income Lacks Price Return Tailwind
- Long-term bond returns will be limited as interest rates move sideways.
- Investors can mainly expect coupon returns without the price appreciation seen in a declining rate cycle.
Europe Outperforms U.S. but Shifts Ahead
- Europe currently outperforms the U.S. due to increased fiscal spending and business growth efforts.
- However, near term returns in Europe may slow, suggesting a tactical overweight in U.S. equities for the next six months.