Buzzberg Cup Live

Latest CPI Report Is a Huge Relief for Investors, Says Santos of JPM Asset Management

Watch on YouTube ↗  |  July 14, 2026 at 15:45  |  8:35  |  Bloomberg Markets
Speakers
Gabriela Santos — Head of Research, BTIG
Romaine Bostick — Anchor, Bloomberg

Summary

Gabriela Santos of JPMorgan Asset Management interprets the latest CPI report as a huge relief that likely keeps the Fed on hold for the rest of the year. She explains that AI infrastructure spending is squeezing software companies, creating near-term headwinds, while AI supply chain sectors like semiconductors, hardware, and power see extraordinary earnings growth. AI stock volatility is becoming a feature, requiring careful selection. Banks benefit from a ‘good enough’ economy and strong fundamentals, and short-term Treasuries offer value as rate hike risk fades.

  • Soft CPI print removes July hike risk, supports Fed staying on hold.
  • Short-end Treasuries offer value after 2-year yield rose 80bps this year.
  • AI CapEx surge benefits semiconductor, hardware, and power supply chain stocks.
  • Software sector faces disruption risk from AI spending, IBM drop as example.
  • AI stock tantrums are now a feature; investors must be selective.
  • Banks show strong loan growth, low defaults, and good regulatory backdrop.
  • Labor market has normalized, easing earlier fears of a breakdown.
Ideas
Gabriela Santos Head of Research, BTIG 0:29
Software faces AI disruption near-term.
The software group is being disrupted by AI infrastructure spending; CTOs are focused on AI adoption and rationalizing token usage, creating near-term headwinds for software companies. IBM's sharp drop exemplifies the risk. Questions around business models persist short term, though medium term select vertical software with proprietary data may benefit.
IGV MED
Gabriela Santos Head of Research, BTIG 4:29
Short-term bonds attractive, Fed on hold.
The soft CPI print reduces the risk of a Fed hike, keeping the Fed on hold for the rest of the year. The 2-year yield has moved up 80 basis points this year, creating value at the short end because sustained core inflation pressure is unlikely and the Fed won't have to hike.
Short-term Treasuries (2-year) HIGH
Gabriela Santos Head of Research, BTIG 5:48
AI cap-ex beneficiaries booming.
Investors are enthusiastically following the money from hyperscalers to the entire AI ecosystem supply chain. Earnings growth is extraordinary: 100% for semiconductors, 40% for hardware and power. This AI CapEx surge is funding strong growth in public equities across these sectors.
SMH Hardware POWER HIGH
Gabriela Santos Head of Research, BTIG 6:28
AI volatility rising, be selective.
AI stocks have run far, and the AI tantrums seen in June are becoming a feature, not a bug. Investors should be careful about sizing and stock selection within AI, as indiscriminate enthusiasm may lead to sharp pullbacks.
AI stocks (broad theme) MED
Gabriela Santos Head of Research, BTIG 7:59
Banks strong in okay economy.
In an economy that is good enough, banks are attractive. Earnings are strong from capital markets, loan growth is picking up including C&I loans, the regulatory environment is good, and defaults/delinquencies are very low.
KBE HIGH
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This Bloomberg Markets video, published July 14, 2026, features Gabriela Santos discussing IGV, Short-term Treasuries (2-year), SMH, Hardware, POWER, AI stocks (broad theme), KBE. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Gabriela Santos  · Tickers: IGV, Short-term Treasuries (2-year), SMH, Hardware, POWER, AI stocks (broad theme), KBE