Treasuries Gain on Fed Rate-Hike Bets | The Close 7/2/2026

Summary

Bloomberg's 'The Close' on July 2, 2026 reacted to a cooling US jobs report that reduced rate-hike odds and sparked a tech-to-cyclical rotation. Jim Caron of Morgan Stanley stayed overweight equities, favoring consumer and value. Craig Irwin defended Tesla on AI/robotaxi potential despite a post-deliveries drop. Private credit redemption pressures intensified, with Jacob Walthour highlighting Blue Owl's struggles and touting Micron on AI dips. An unnamed guest called SpaceX stock and bonds junk. Vanguard's Rebecca Venter advocated high-quality corporate credit and shunned high yield. Meb Faber celebrated 250 years of US equity outperformance.

• June payrolls weakened and prior months revised lower, cutting rate-hike expectations and supporting a rotation into cyclicals and value.
• Morgan Stanley CIO Jim Caron remains overweight equities on earnings growth and sees consumer strength and value outperformance continuing.
• Roth analyst Craig Irwin maintains Tesla buy, arguing AI and robotics drive the valuation more than quarterly deliveries.
• Blueprint Capital CEO Jacob Walthour warns on Blue Owl amid private credit redemption pain but sees Micron as a dip-buying opportunity on AI.
• Vanguard's Rebecca Venter favors investment-grade corporate credit for carry and recommends underweight high-yield due to tight spreads.
• SpaceX's public debut is met with caution; a Bloomberg guest calls its bonds and stock junk given lack of profits and single-owner control.
• Cambria's Meb Faber highlights the 250-year US equity bull market and the enduring power of long-term compounding in American stocks.
• The S&P 500 ended flat but equal-weight hit a record, underscoring the broadening rally away from mega-cap tech.