Stock, Bond Rout Takes Breather; Trump Delays Canada Tariffs

Watch on YouTube ↗  |  August 19, 2026 at 13:54  |  42:33  |  Bloomberg Markets
Speakers
Chloe — Reporter, Bloomberg
Neil — Reporter, Bloomberg
Keith Lerner — Chief Investment Officer, Truist Wealth
Maddie Parker — Reporter, Bloomberg
Winnie Hsu — Bloomberg Reporter (Asia Markets)
Brendan Murray — Trade Reporter, Bloomberg

Summary

US equity futures waver as a global chip selloff takes a breather following SK Hynix's announcement of a $29 billion share buyback. Meanwhile, the Trump administration delays 50% tariffs on Canadian goods for three days amid tentative deal negotiations. In the Middle East, the UAE cuts economic ties with Iran after accusing it of firing ballistic missiles, keeping oil prices elevated.

  • SK Hynix announces a $29 billion share buyback, easing AI overspending fears.
  • Alphabet pays near 7% to borrow in Australia, signaling the AI trade is becoming more expensive.
  • The US delays 50% tariffs on Canadian goods for three days to finalize a tentative trade agreement.
  • The UAE cuts economic ties with Iran, citing ballistic missile violations.
  • Truist's Keith Lerner remains bullish on US equities, citing a historic earnings boom and lower tech valuations.
  • Lowe's is expected to post strong earnings following Home Depot's resilient results in the home renovation space.
Ideas
Chloe Reporter, Bloomberg 2:14
In-line UK CPI supports dovish BOE repricing.
UK CPI data came in line with expectations, reflecting already anticipated factors and giving the Bank of England room to hold off on rate hikes, which is prompting a dovish repricing that supports short-end UK Gilts.
Short-end UK Gilts MED
Chloe Reporter, Bloomberg 4:29
Keysight benefits from AI and defense spending.
Keysight Technologies reported a forecast ahead of expectations and is well positioned to benefit from continued spending on AI infrastructure, defense, and 6G networks.
KEYS MED
Chloe Reporter, Bloomberg 4:51
UK probe into drip pricing weighs heavily.
Trainline shares are weighed down significantly after the UK competition authority opened an investigation into the company's use of drip pricing and failure to disclose full costs to consumers.
TRN MED
Neil Reporter, Bloomberg 5:52
Massive share buyback boosts stock short term.
SK Hynix's massive $29 billion share buyback announcement is positive for the stock in the short term, as it helps reassure investors who have been worried about the durability of AI capex spending.
000660.KS MED
Neil Reporter, Bloomberg 6:58
High borrowing costs signal expensive AI trade.
Alphabet paying near 7% to borrow in Australia and posting negative free cash flow last quarter signals that the AI trade is getting more expensive, raising risk questions for global investors geared into the AI trade.
GOOGL MED
Keith Lerner Chief Investment Officer, Truist Wealth 24:30
Historic earnings boom supports the bull market.
The US equity bull market deserves the benefit of the doubt as it comes off a historic earnings season, with forward estimates for 2024 and 2025 moving higher at a rapid clip.
SPY HIGH
Keith Lerner Chief Investment Officer, Truist Wealth 26:50
Tech sector offers lower valuations and growth.
AI and technology remain the dominant themes of this bull market, and the tech sector is now trading at lower valuations with one of the lowest premiums seen in the last decade, keeping the upward trend intact.
XLK Large-cap Equities HIGH
Keith Lerner Chief Investment Officer, Truist Wealth 27:43
Energy provides diversification beyond the tech story.
The current bull market is not just a tech story, making the energy sector an attractive overweight position to diversify exposure.
XLE MED
Keith Lerner Chief Investment Officer, Truist Wealth 29:37
Strong big tech balance sheets support IG.
Despite credit spreads moving higher for some AI companies, big tech companies maintain very strong balance sheets, making investment grade bonds somewhat attractive at current levels.
Investment Grade Bonds MED
Maddie Parker Reporter, Bloomberg 41:05
Home Depot's strong results bode well for Lowe's.
Lowe's is expected to post good results following Home Depot's strong earnings, as consumers continue to lean into renovation projects and Lowe's pushes into AI and contracting.
LOW MED
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This Bloomberg Markets video, published August 19, 2026, features Chloe, Neil, Keith Lerner, Maddie Parker discussing Short-end UK Gilts, KEYS, TRN, 000660.KS, GOOGL, SPY, XLK, Large-cap Equities, XLE, Investment Grade Bonds, LOW. 10 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Chloe, Neil, Keith Lerner, Maddie Parker  · Tickers: Short-end UK Gilts, KEYS, TRN, 000660.KS, GOOGL, SPY, XLK, Large-cap Equities, XLE, Investment Grade Bonds, LOW