Squawk on the Street SOTS 2nd Hour: EU Trade Deal Details & The Impact on Energy, Alcohol Stocks… Plus: This Week’s Earnings/Fed Playbook 7/28/25
Jul 28, 2025
Rebecca Patterson, former chief investment strategist at Bridgewater Associates, dives into the recent trade deal with the EU and its significant impact on energy and alcohol stocks. She discusses misconceptions about tariffs and their linkage to AI investments in the market. The conversation touches on the record highs of the S&P and Nasdaq, the busy earnings season with major reports from tech giants, and the evolving consumer trends in the alcohol industry, highlighting the challenges and opportunities ahead.
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Episode notes
AI and Deficit Mask Tariff Impact
- The U.S. economy is resilient due to AI-driven CapEx growth and tax offsets that balance tariff impacts.
- A large budget deficit funded by global markets is key to offsetting tariff pain for the U.S.
Execs' Sentiment Drives Growth
- The qualitative assessments by company executives will be critical for the economic outlook.
- Their sentiment on costs and investment drives corporate activities and future growth.
AI and FDI Support Growth
- AI-related investments reduce the need for Fed rate cuts as tech growth supports the economy.
- Increased foreign direct investment into the U.S. could bolster growth unexpectedly.