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Bloomberg Surveillance 6/25/2026

Watch on YouTube ↗  |  June 25, 2026 at 16:17  |  2:24:25  |  Bloomberg Markets
Speakers
Sebastien Page — CIO & Head of Global Multi-Asset, T. Rowe Price
Angelo Zino — Senior Equity Analyst, CFRA Research
Heath Terry — Analyst, Citi
Ohsung Kwon — Chief Equity Strategist, Wells Fargo
Liz Ann Sonders — Chief Investment Strategist, Charles Schwab
Meghan Swiber — Rates Strategist, Bank of America
Terry Haines — Pangaea Policy Advisory
Darius Dale — Founder, 42 Macro
Bill Dudley — Senior Advisor, Bloomberg Economics

Summary

Micron's blowout earnings with 85% margins reignite the AI rally, pushing the S&P 500 and Nasdaq higher. Strategists from T. Rowe Price, Wells Fargo, and Citi remain bullish on AI bottlenecks, advocating long semis over hyperscalers. Core PCE inflation comes in slightly below fears, prompting debate on Fed rate hikes, with BofA forecasting three hikes and recommending curve flatteners. Oil prices wiping out wartime highs add a disinflationary tailwind, while Liz Ann Sonders sees rotation into small caps and biotech. Political noise from Trump's battles with GOP and oil companies adds uncertainty.

  • Micron (MU) jumps 18% premarket after posting 85% gross margins and forecasting prolonged memory shortages, lifting chip stocks.
  • Sebastian Page (T. Rowe Price) stays long U.S. large-cap growth and AI bottlenecks expanding to small/mid-caps and EM.
  • Ohsung Kwon (Wells Fargo) raises S&P 500 target to 7950, prefers capex-takers (semis, construction) over hyperscalers.
  • Heath Terry (Citi) says memory demand far outstrips supply, consensus earnings too low for memory companies.
  • Meghan Swiber (BofA) expects three Fed hikes and recommends a curve flattener (short 2-year, long 10-year).
  • Core PCE at 4.1% YoY is the highest since April 2023 but a slight downside surprise, reducing immediate hike fears.
  • Oil (WTI) falls into the $60s, erasing the Iran war premium and easing energy inflation for consumers.
  • Liz Ann Sonders (Charles Schwab) highlights rotation into Russell 2000 and healthcare/biotech as AI trade broadens.
Ideas
Sebastien Page CIO & Head of Global Multi-Asset, T. Rowe Price 4:54
AI bottlenecks expand beyond big tech.
AI bottlenecks are expanding to cooling, electrification, aerospace, gas turbines, and spreading to small/mid-cap companies and emerging markets. Once a component becomes a bottleneck, stocks go vertical.
U.S. Small/Mid-Cap AI Bottleneck Stocks EEM MED
Sebastien Page CIO & Head of Global Multi-Asset, T. Rowe Price 5:59
AI bull run continues, growth stocks cheap.
AI demand is still scratching the surface, with billions of users and expanding bottlenecks beyond GPUs to cooling, electrification, aerospace, and gas turbines. Large-cap growth valuations have de-rated from 30x to 22x, making them attractive. The next leg will be AI users improving margins.
Russell 1000 Growth Index MED
Angelo Zino Senior Equity Analyst, CFRA Research 31:55
Micron margins stunning, buybacks ahead.
Micron's gross margins hit 85%, far above expectations, with no line of sight to supply catching up with demand for years. Long-term customer agreements improve revenue visibility, and free cash flow will be used for buybacks. Trough margins will be well above past cycle peaks.
MU HIGH
Ohsung Kwon Chief Equity Strategist, Wells Fargo 51:46
Buy semis, sell hyperscalers.
The market is punishing stocks in an investment cycle (hyperscalers) while rewarding capex-takers. Semis and construction companies benefit from the AI buildout as hyperscalers continue spending. This relative trade has further to run.
SMH PKB HIGH
Ohsung Kwon Chief Equity Strategist, Wells Fargo 51:46
Buy semis, sell hyperscalers.
The market is punishing stocks in an investment cycle (hyperscalers) while rewarding capex-takers. Semis and construction companies benefit from the AI buildout as hyperscalers continue spending. This relative trade has further to run.
Hyperscalers (Meta, Microsoft, Alphabet) HIGH
Ohsung Kwon Chief Equity Strategist, Wells Fargo 53:27
S&P 500 going higher.
Sentiment has reset from euphoric to neutral, oil decline reduces inflation concern, tariff refunds and Trump accounts will provide equity inflows and EPS boost. Raised S&P target to 7950.
SPY HIGH
Meghan Swiber Rates Strategist, Bank of America 94:21
Flatten yield curve, short front long back.
The Fed will hike rates to regain inflation credibility, pushing front-end yields higher. Long-end yields will decline as markets price future easing once inflation is under control. Recommends implementing via real yields vs nominals, resulting in curve flattening.
10-Year U.S. Treasury Note HIGH
Meghan Swiber Rates Strategist, Bank of America 94:21
Flatten yield curve, short front long back.
The Fed will hike rates to regain inflation credibility, pushing front-end yields higher. Long-end yields will decline as markets price future easing once inflation is under control. Recommends implementing via real yields vs nominals, resulting in curve flattening.
2-Year U.S. Treasury Note HIGH
Liz Ann Sonders Chief Investment Strategist, Charles Schwab 104:52
Small caps and biotech benefit from rotation.
The AI trade is broadening beyond early players. The Russell 2000 is heavily performing with exposure to healthcare and biotech, which are beneficiaries of the rotation away from highly concentrated mega-caps.
RTY XLV MED
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This Bloomberg Markets video, published June 25, 2026, features Sebastien Page, Angelo Zino, Ohsung Kwon, Meghan Swiber, Liz Ann Sonders discussing U.S. Small/Mid-Cap AI Bottleneck Stocks, EEM, Russell 1000 Growth Index, MU, SMH, PKB, Hyperscalers (Meta, Microsoft, Alphabet), SPY, 10-Year U.S. Treasury Note, 2-Year U.S. Treasury Note, RTY, XLV. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Sebastien Page, Angelo Zino, Ohsung Kwon, Meghan Swiber, Liz Ann Sonders  · Tickers: U.S. Small/Mid-Cap AI Bottleneck Stocks, EEM, Russell 1000 Growth Index, MU, SMH, PKB, Hyperscalers (Meta, Microsoft, Alphabet), SPY, 10-Year U.S. Treasury Note, 2-Year U.S. Treasury Note, RTY, XLV