Stocks Climb as Rebound in Chipmakers Gathers Pace

Summary

Julian Emanuel of Evercore ISI joins Bloomberg to discuss the stock market rebound, AI-driven tech volatility, and second-quarter earnings. He argues the bull market remains intact and is not a repeat of the Y2K bust. Emanuel is particularly bullish on the Magnificent Seven, citing under-ownership, active short positions, and impending short covering. He also highlights negative beta value stocks as a diversification tool and comments on oil, bond yields, and Fed expectations.

• Wall Street staged a comeback driven by dip buyers and a chipmaker rally on AI optimism.
• Julian Emanuel (Evercore ISI) says the bull market is intact, unlike Y2K, due to strong earnings and a solid economy.
• He believes large-cap tech, especially the Magnificent Seven, is set to rally as under-ownership and short covering align with earnings.
• Free cash flow concerns for hyperscalers are already priced in, while the rest of the S&P 500 sees record free cash flow.
• Value stocks are outperforming growth in this up market, and negative beta value stocks offer true diversification.
• Oil above $90 and a potential global breakout in long-term yields pose risks for the Fed and markets.
• Software stocks require a selective approach, and the Fed is not expected to act next week.