Episode summary
Bloomberg Surveillance TV: July 27th, 2026 | Bloomberg Surveillance
Bloomberg Surveillance
· · 20 min · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr · Guests: Savita Subramanian, Tobin Marcus, Lindsey Piegza
Summary
Stocks opened the week higher, but the discussion centered on why mega-cap tech may no longer be able to carry the market. A guest from Bank of America argued that good earnings are already priced into tech, that the group has stopped rallying on beats, and that the S&P 500’s upside is now constrained by concentration risk. The guest’s 7,100 year-end target implied that even solid performance elsewhere may not offset further weakness in tech.
That same guest said investors could rotate toward inflation-protected equities rather than paying up for big tech. The preferred pockets were large-cap value, REITs, utilities, and MLPs, which the guest said could better preserve purchasing power and pay income if inflation remains sticky.
The foreign-policy segment focused on Iran, U.S. strikes, and depleted air-defense stockpiles. A guest from Wolfe Research said the stockpile issue and recent bond-market moves could help force a durable diplomatic turn, but that a permanent solution still looks difficult without a major shift in U.S. policy. A guest from Stifel argued the Fed is likely to stay on hold for several meetings because inflation is still above target, even as energy-price pressure and tariffs complicate the outlook.
Key takeaways
- The Bank of America guest said the S&P 500 could finish 2026 at 7,100 because mega-cap tech no longer looks capable of driving the index higher by itself.
- The guest argued that tech earnings strength is already priced in and that stocks are no longer rallying on beats in revenue or profits.
- The guest favored inflation-protected income trades, especially large-cap value, REITs, utilities, and MLPs, over more expensive tech names.
- The Wolfe Research guest said depleted air-defense munitions and higher bond yields could push the Iran conflict toward de-escalation, but not necessarily a lasting settlement.
- The Stifel guest said the Fed is likely to leave policy unchanged for several meetings because inflation is still above target and energy prices add upside risk.
Notable quotes
“good results are no longer enough to move the needle in tech”
“the idea that these stocks are going to continue to lead us to new highs, I think is is uh is no longer the case”
“I think right now we're in an air pocket, and we've been talking about this all year”
“the depleting stockpile of uh air defense munitions is two things that could essentially force uh some kind of a a you know durable diplomatic turn”
“policy simply remaining steady on hold for the next several meetings”
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 kicking off the week higher ahead of a massive slate of tech earnings. Sevita Subramani with Bank of America has a street low 7,100 yearend price target on the S&P and writes the following. Underlying earnings growth remain strong, but good results are no longer enough to move the needle in tech.
Svita joins us now for more. Sevita, welcome to the program. I'll start with a large question and I imagine it involves a complex long answer and you'll have space for that.
But why is the outlook for the index right now in your mind so compromised?
Yeah, lots of different reasons, but one is what we've been talking about, what I've been listening to on the show so far, the good news for tech seems to be priced in. The companies are no longer rallying and outperforming on beats on earnings and revenues. In fact, they've sold off on earnings and revenues.
We've had an environment where the rest of the market is actually pretty healthy, but I think it's all been obscured by the elephant in the room, which is mega cap tech. And the idea that these stocks are going to continue to lead us to new highs, I think is is uh is no longer the case.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us equity strategy
- quantitative strategy
- policy and politics
- economic outlook
- investment markets
Companies and tickers mentioned
- BAC
- SF
- Bank of America Securities
- Wolfe Research
- Stifel Nicolaus
Watch the episode
Watch “Bloomberg Surveillance TV: July 27th, 2026 | Bloomberg Surveillance” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Surveillance
-
Stocks Rise as Inflation Data Ease Fed-Hike Worry | Bloomberg Surveillance -
Bloomberg Surveillance TV: November 13th, 2026 | Bloomberg Surveillance -
Bloomberg Surveillance TV: November 12th, 2026 | Bloomberg Surveillance -
Jensen Huang Ousted by Nvidia Board as CEO | Bloomberg Surveillance -
Bloomberg Surveillance TV: November 11th, 2026 | Bloomberg Surveillance -
AI Stocks Rebound as Fed Hike Bets Return | Bloomberg Surveillance
Bloomberg Surveillance, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
