Market cleared Fed meeting with muted reaction; Mag 7 stocks showing divergent performance; VIX retreating from highs.
Sam
Liz Ann Sonders
Highlights need to avoid monolithic investment decisions due to rapid rotations within sectors like tech (Microsoft down 11%, Meta up 8%).
Liz Ann Sonders
Unique earnings season characteristic: misses punished less severely than past years, but beats also down on first trading day.
Fed upgraded economic view but remains on hold; questions linger about Fed independence and dollar; asks about impact of trade data and job cuts.
Sam
Liz Ann Sonders
Trade data distorted by tariff timing effects; import surge likely to be a hit to GDP estimates.
Liz Ann Sonders
Focus should be on productivity story and whether AI is showing up in profit margins, citing Microsoft's margin downgrade as market issue.
Asks about international flows as part of broadening market story, particularly to emerging markets.
Sam
Liz Ann Sonders
ETF flow data shows big outflows from US large caps, continued flows into emerging and developed international markets.
Liz Ann Sonders
Parabolic move in precious metals (gold and silver) and dollar weakness reflect macro instability and uncertainty.