Stocks Fall as Brent Tops $100 Ahead of Key Inflation Data

Watch on YouTube ↗  |  September 09, 2026 at 14:36  |  2:24:15  |  Bloomberg Markets
Speakers
Max Kettner — Chief Multi-Asset Strategist, HSBC
Wayne Santos — Bloomberg Intelligence
Heath Terry — Analyst, Citi
Jeremy Stretch — Editor, Financial Times
Steve Chiavarone — Chief Equity Strategist, Federated Hermes
Jenny Johnson — President and CEO of Franklin Templeton
Mike Wilson — Chief Investment Officer, Morgan Stanley
Kara Murphy — Chief Investment Officer, Kestra Investment Management
Jessica Taylor — Cook Political Report
Mike Feroli — Chief US Economist, JPMorgan
Dermot McDonogh — CFO, BNY
Bruce Van Saun — Chairman & CEO, Citizens Financial Group

Summary

The program examines stock and bond market pressure as Brent crude tops $100 ahead of key inflation data. Guests broadly stay constructive on U.S. equities and AI infrastructure despite oil and inflation risks, while also seeing higher near-term yields and recommending hedges such as energy, quality, gold and crypto. Treasury buybacks, the yen, BOJ-Fed-ECB policy and Friday's CPI are the main catalysts.

  • Brent crude breaks above $100 after U.S.-Iran tanker strikes.
  • HSBC's Max Kettner argues yields should be higher but equities are super bullish, with an S&P 500 target of 8100.
  • Citi's Heath Terry sees AI/data-center buildout continuing despite existential-risk warnings.
  • CIBC's Jeremy Stretch sees yen strength if the BOJ follows through with hikes.
  • Federated Hermes' Steve Chiavarone raises S&P targets to 8500 for 2026 and 10000 for 2027.
  • Morgan Stanley's Mike Wilson recommends energy, quality, S&P 500 and gold/crypto while avoiding long bonds.
  • Treasury buyback size and Friday CPI are key upcoming catalysts.
  • Fed, BOJ and ECB meetings are in focus as markets price rate hikes.
Ideas
Max Kettner Chief Multi-Asset Strategist, HSBC 6:49
Yields should rise on strong nominal growth.
U.S. nominal GDP growth has risen from 4.5% to 6.5% over the past year, so Treasury yields should be higher; the 10-year at 4% and pricing for one or two Fed cuts are inconsistent with that growth.
U.S. 10-Year Treasury HIGH
Max Kettner Chief Multi-Asset Strategist, HSBC 8:56
Equities remain bullish; S&P target 8100.
The medium-term picture is exceptionally good with margin growth like 1995-99; medium-term earnings power and AI capex keep the market moving up and to the right; the committee's 2026 S&P target is 8500 and 2027 target is 10000.
SPY HIGH
Wayne Santos Bloomberg Intelligence 22:56
Defense demand stays elevated.
Munitions stockpiles are low and demand for ballistic missile interceptors is growing globally; Lockheed and RTX are increasing production, and the entire defense industrial base is ramping capacity, supporting defense stocks.
LMT RTX ITA HIGH
Heath Terry Analyst, Citi 33:11
AI infrastructure buildout keeps accelerating.
The AI buildout is not slowing: management teams fear underinvestment more than overinvestment, and regulatory or local pushback only relocates data centers; bottlenecks in memory, power and electrical equipment extend the build, keeping AI infrastructure demand strong.
AIQ HIGH
Jeremy Stretch Editor, Financial Times 42:35
Yen can strengthen on BOJ tightening.
A 25bp BOJ hike next week is priced, and if the market prices more tightening after it, dollar-yen can keep retreating; for now it is probably right not to bet against the Treasury/BOJ on the yen.
FXY MED
Steve Chiavarone Chief Equity Strategist, Federated Hermes 56:23
Avoid long-duration bonds.
The risks to inflation are greater than risks to growth, an environment that is not good for bonds or long-duration bonds even though it supports equities.
long-duration U.S. Treasuries MED
Jenny Johnson President and CEO of Franklin Templeton 79:31
Private credit fundamentals remain healthy.
Direct lending fundamentals remain solid: 60% of companies in their direct lending book are outperforming models and there are no real increases in defaults or slowing, so private credit can absorb higher cost of capital better.
BIZD MED
Mike Wilson Chief Investment Officer, Morgan Stanley 102:01
Energy stocks hedge rising oil prices.
Energy is a hedge: product prices and crack spreads are extremely high and there is no demand destruction, so oil prices look likely to rise further; continue to own energy stocks as a portfolio hedge.
XLE HIGH
Mike Wilson Chief Investment Officer, Morgan Stanley 102:12
Quality stocks beat low-quality stocks.
The market is in a quality rotation; free cash flow quality factors have worked since June, and lower-quality early-cycle areas are vulnerable to higher rates and oil prices, so investors should upgrade portfolios toward quality.
Quality Factor MED
Mike Wilson Chief Investment Officer, Morgan Stanley 102:50
Gold and crypto hedge inflation.
Gold and crypto are probably good hedges against inflation getting out of bounds, especially as the US is a larger energy producer and less vulnerable; they belong as alternative assets in a bull market.
Cryptocurrencies GLD MED
Kara Murphy Chief Investment Officer, Kestra Investment Management 141:36
Stay overweight equities and keep bonds.
Earnings growth remains extraordinarily strong, so they are overweight equities; inflation and oil are headwinds but fixed income still provides ballast with much higher nominal yields than a couple of years ago.
Equities TLT MED
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This Bloomberg Markets video, published September 09, 2026, features Max Kettner, Wayne Santos, Heath Terry, Jeremy Stretch, Steve Chiavarone, Jenny Johnson, Mike Wilson, Kara Murphy discussing U.S. 10-Year Treasury, SPY, LMT, RTX, ITA, AIQ, FXY, long-duration U.S. Treasuries, BIZD, XLE, Quality Factor, Cryptocurrencies, GLD, Equities, TLT. 11 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Max Kettner, Wayne Santos, Heath Terry, Jeremy Stretch, Steve Chiavarone, Jenny Johnson, Mike Wilson, Kara Murphy  · Tickers: U.S. 10-Year Treasury, SPY, LMT, RTX, ITA, AIQ, FXY, long-duration U.S. Treasuries, BIZD, XLE, Quality Factor, Cryptocurrencies, GLD, Equities, TLT