Nvidia Earnings Loom for AI-Obsessed Stock Market | Bloomberg Surveillance

The discussion centered on a market that is still being pulled in different directions by AI enthusiasm, valuation concerns, and policy uncertainty. A guest strategist argued that the recent wobble in technology is likely temporary, but that choppy trading could persist because investors are reassessing AI’s impact on jobs, software, and which companies will actually capture the upside. She also said the rotation into small caps, value, and other unloved parts of the market should continue if growth holds up, rates keep falling, and deregulation advances.

The conversation also highlighted how non-U.S. markets have strengthened relative to the United States. The strategist said cheaper valuations, a weaker dollar, and more certainty in parts of Europe and Asia are making international assets more attractive, while U.S. policy uncertainty is pushing the hurdle for American stocks higher. On fixed income, a guest from Franklin Templeton warned that the flood of tech debt issuance is beginning to pressure spreads and that investors should look more to emerging market debt, higher-quality high yield, and some convertible structures.

Mandeep Singh said Nvidia still looks positioned for upside into earnings because hyperscalers have raised capex plans, but he stressed that growth will eventually slow from an enormous base. He argued that the real issue now is who monetizes AI, not whether the technology is transformative. Patrick McHenry then shifted to politics, saying last night’s State of the Union was a missed opportunity for Democrats and that Trump’s coalition message on taxes, immigration, and tariffs was aimed at consolidating support heading into the election year.