Episode summary
Bloomberg Surveillance TV: July 24th, 2026 | Bloomberg Surveillance
Bloomberg Surveillance
· · 19 min · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr · Guests: Keith Lerner, Monica Guerra, Dave McCormick
Summary
Stocks were trying to recover after the biggest one-day drop in a month, and the key market argument was that the selloff still looked like rotation rather than broad liquidation. A guest from Truist said money was moving out of the most crowded tech and semiconductor names and into energy, industrials, financials and healthcare, while still keeping a constructive longer-term view on tech. He argued that valuations in big-cap tech and semis had reset sharply, with expectations and multiples coming down enough to make the sector more interesting again, even if the near-term path remained choppy.
The discussion also focused on whether the market was starting to question the AI capex cycle. The guest said rising credit spreads and weaker reactions to spending-heavy names like Alphabet and Tesla showed investors were becoming more skeptical about the durability of hyperscaler spending. He still thought the sector could be a buying opportunity over time, but said the recent move in semis had likely further to go after an 80%+ quarter and a huge run over the past year.
Later, a policy guest said inflation pressures, gas prices, tariffs and geopolitical tensions were shaping the midterm outlook more than headline growth data. A Republican senator argued the U.S. defense base needs faster procurement, more drone and AI capacity, and more production at home, while saying the Federal Reserve should keep rates steady for now.
Key takeaways
- The Truist CIO said the market’s recent weakness still looks like rotation, not broad liquidation, as money shifts from tech into cyclicals and defensives.
- He said big-cap tech valuations have reset from about a 32 multiple to about 23, making the sector more attractive longer term.
- The guest said rising credit spreads and weaker stock reactions suggest investors are questioning the durability of hyperscaler AI spending.
- The policy guest said gas prices, tariffs and Iran-related pressure could matter more for the midterms than resilient macro data.
- The senator said U.S. defense production is too slow for drone- and AI-driven warfare and needs faster procurement and more domestic capacity.
Notable quotes
“The encouraging development is that this is still looking more like rotation than broad-based liquidation”
“I think we're still seeing this big move up, but I also like if you zoom out a bit here, Jonathan, um back when we had that rally off the lows in in March”
“the technology sector was trading for about a 32 multiple. Now that's down to about 23”
“there's so much uncertainty about how all the AI spending turns into cash flow like and and when”
“we need to introduce new players into our defense ecosystem, drone manufacturers, and all sorts of other unique capabilities”
How the episode opens
Bloomberg Audio Studios podcasts radio news. This is the Bloomberg Surveillance Podcast. I'm Jonathan Pharaoh along with Lisa Abramitz and Amarie Hordern.
Join us each day for insight from the best in markets, economics, and geopolitics. From our global headquarters in New York City, we are live on Bloomberg television weekday mornings from 6:00 to 9:00 a.m. Eastern.
Subscribe to the podcast on Apple, Spotify, or anywhere else you listen. And as always on the Bloomberg terminal and the Bloomberg Business app. We begin this hour with stocks attempting to rally following the biggest one-day drop in a month.
Keith Lerner of Truist writing, "The encouraging development is that this is still looking more like rotation than broad-based liquidation. Keith joins us now for more. Keith, I don't know when you wrote that, but does it apply to the price action of the last 24 hours, too?
Oh, yes, early. And uh hey good uh good Friday uh Jonathan good Friday. Um listen even yesterday you know we had that you know some big cap tech names down a lot and then you looked at the board yesterday you had energy up you had industrials up you had financials up you had healthcare up.
So, I think we're still seeing this big move up, but I also like if you zoom out a bit here, Jonathan, um back when we had that rally off the lows in in March uh for the S&P, there was only one sector that outperformed one and that was tech and tech was up 47%. The closest sector behind it was that was uh lagged it by almost uh by sorry by more than 20%. So you you know you had expectations reset higher it was one sector is very dominated and now that money is rotating to other areas and to my to the point that you just uh discussed it's not leaving the market it's just rotating to other areas and you're also having some pretty good numbers yesterday if I looked at the board yesterday you had a lot of these industrials uh you know up three four five%.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- markets
- economy
- investment strategy
- us policy
- politics
Companies and tickers mentioned
- TFC
- MS
- Truist Advisory Services
- Morgan Stanley
Watch the episode
Watch “Bloomberg Surveillance TV: July 24th, 2026 | Bloomberg Surveillance” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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