Market environment allows Fed to ease with a softening labor market, says Citi's Rob Rowe

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Oil

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Citigroup 8.4
Investment Bank $1800.00B
Rob Rowe 9.0

Market environment allows Fed to ease with a softening labor market, says Citi's Rob Rowe

metals

We like base metals actually in terms of aluminum and copper, given the continued investment in AI and infrastructure. Bullish on industrial/base metals due to structural investment themes.

2/2/2026 8:50:45 PM	short term down	6 days later	+1.02%	-1.02%
1/29/2026 11:55:11 AM	medium term up	20 days later	-0.63%	-0.63%
12/15/2025 8:22:43 PM	short term up	6 days later	+5.42%	+5.42%
10/9/2025 11:58:10 PM	short term up	5 days later	+8.40%	+8.40%
9/23/2025 7:37:45 PM	medium term up	20 days later	+13.32%	+13.32%

Asks about market churning action and the significance of reclaiming the 6900 level.

Host
Rob Gross

Confirms constructive view, reiterates very bullish year-end S&P 500 target of 7700 with $320 earnings.
Rob Gross

Expects increased adoption and productivity, cites resilient US economy. Worries about labor market softening will drive Fed to at least 3 cuts in the year, more in H2.

Notes 'no fire, no hire' mode with some layoffs, sees improved labor productivity now.
Asks how hot economy with fiscal stimulus squares with rate cuts later in the year.

Host
Rob Gross

Key question is inflation, which he expects to be tame. Sees some goods inflation from tariffs, but promising decline in services inflation.

Argues that with constant/declining inflation and labor softness, rate cuts are possible even with a growing economy.
Asks if rotation into value/defensives will be short-lived.

Host
Rob Gross

No, thinks market can broaden out. Core premise is productivity from AI/innovation over next 3-5 years.

Notes labor productivity contribution to GDP is ahead of schedule compared to internet innovation cycle, expects it to contribute >1% to real GDP.
Asks about concern that AI efficiencies could lead to widespread layoffs and impact macro view.

Host
Rob Gross

Layoffs will be sector-specific; expects some in this transition, contributing to labor softness, but profitability and productivity will improve.

Acknowledges hard to gauge the extent.
Asks if gold at $5k signals stress at long end, persistent inflation, or eroding US stature.

Host
Rob Gross

Gold related to dollar cheapness and global fiscal deficits. Thinks it can hold here but doesn't see it rising much higher.
Asks for similar thoughts on silver.

Host
Rob Gross

Similar thoughts on silver. Likes base metals like aluminum and copper due to continued investment in AI and infrastructure.

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