Oil Rises as Traders Await US Response to Iran Proposal | Bloomberg Brief 4/28/2026

Watch on YouTube ↗  |  April 28, 2026 at 11:08  |  42:59  |  Bloomberg Markets
Speakers
Mark Haefele — Chief Investment Officer, UBS Global Wealth Management
Will Kennedy — EMEA News Director, Bloomberg

Summary

Brent crude rises above $110 as traders await the U.S. response to Iran's proposal to end the war. UBS CIO Mark Haefele sees manageable growth and expects Fed cuts, recommending diversification into China AI. State Street's Cayla Seder favors tech hardware/semiconductors and notes software positioning opportunities ahead of the Fed decision.

  • Oil prices elevated due to the Strait of Hormuz blockade and U.S. naval blockade on Iranian exports.
  • President Trump weighs Iran's proposal; White House says response coming soon.
  • UBS CIO Mark Haefele expects economic growth to hold up and the Fed to cut 50bps by year-end.
  • Haefele advises investors to diversify beyond mega-cap tech into China AI for cheaper exposure.
  • Cayla Seder of State Street prefers large-cap tech hardware and semiconductors for quality and consistent demand.
  • Software stocks have lower positioning, offering theoretical upside potential.
  • The Fed decision is tomorrow; markets are pricing a possible single cut but data remains strong.
  • Earnings season continues with GM, Coca-Cola, Starbucks, and others reporting.
Trade Ideas
Mark Haefele Chief Investment Officer, UBS Global Wealth Management 19:40
China AI offers cheap diversification.
China's AI tech stack is separate from the U.S. and provides diversification. DeepSeek models are cheaper and may be adopted by Western companies, offering a cost advantage. Investors should gain exposure to China AI as a diversification bet.
China AI MED
Cayla Seder 28:32
Favor tech hardware and semiconductors.
Tech hardware and semiconductor stocks have consistently attracted demand due to high quality, high ROE, and strong profitability. In an environment where the Fed has limited room to cut, sticking with these higher-quality parts of the market makes sense. They continue to offer relative value and earnings growth.
SMH MED
Cayla Seder 28:42
Software positioning low, potential upside.
Software stocks have seen wavering demand and lower positioning relative to hardware and semiconductors. This lower positioning theoretically leaves more room for upside if sentiment shifts, making the sector worth monitoring for a potential recovery.
IGV MED
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This Bloomberg Markets video, published April 28, 2026, features Mark Haefele, Cayla Seder discussing China AI, SMH, IGV. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mark Haefele, Cayla Seder  · Tickers: China AI, SMH, IGV