A Lot of Red Amid AI Skepticism and the Costs of War (E269)

For the week ended July 24, DoubleLine Portfolio Manager Eric Dhall and Analyst Mark Kimbrough see a lot of red on the ticker tape (00:20), with the S&P 500 down on the week amid the AI skepticism that the market is kind of dishing out right now. It was also a red week for fixed income (3:20) as the U.S. interest rate curve sold off, but commodities (4:48) benefited from a potential second energy shock.

While it was a light week in Macro Land, Eric and Mark discuss the 186,000 jobless claims (8:17), the lowest print since 1969, and positive-territory manufacturing and service PMI numbers (10:29), which could have gotten a boost from the World Cup and celebration of the U.S. semiquincentennial. Next week (12:35) will bring lots of macro news, including home prices, a PCE print and a Q2 GDP estimate, but the big event will be the FOMC meeting, the second under new Fed Chairman Kevin Warsh.