Bloomberg Surveillance 6/29/2026

Summary

Bloomberg Surveillance covers the AI-driven equity rally, with multiple strategists raising S&P 500 targets on broadening earnings. Geopolitical tensions with Iran keep oil in focus, while Fed rate hike expectations divide opinions. Sector calls favor semiconductors, equal-weight indices, and consumer, with warnings on trade deal risks for industrials.

• Barclays strategist Ajay Rajadhyaksha sees AI buildout driving earnings, with overshoot a 2028 problem; tech and semis remain buys.
• BofA economist Aditya Bhave expects three Fed rate hikes in 2026, leading to higher front-end yields and underweight bonds.
• BNY Wealth's Alicia Levine targets S&P 500 at 8000, favors hyperscaler reversion trade and real assets for inflation.
• JPMorgan PB's Nur Cristiana warns that USMCA tail risks are underpriced, especially for industrials, auto, and aerospace.
• Standard Chartered's Steve Englander maintains a long U.S. dollar call supported by capital flows and productivity.
• Morgan Stanley's Jim Caron prefers equities over bonds and credit over duration in a higher nominal growth regime.
• SocGen's Manish Kabra raises S&P 500 target to 8000, recommends equal-weight index as earnings broaden to small caps.
• Geopolitical oil risks and AI financing concerns are acknowledged but largely fade into the background.