Quarterly Outlook
Upending the global order at blinding speed
John J. Hardy
Global Head of Macro Strategy
Chief Investment Strategist
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With earnings well underway and the US election fast approaching, there has been lots to talk about in markets this week, with various big names making significant moves.
Last week’s equity markets were all about megacap earnings. In the latest quarter, major players in Big Tech—Alphabet, Microsoft, Meta, Amazon, and Apple—posted impressive revenue beats, but the focus remains on their soaring capital expenditures particularly on AI investments that are not yielding immediate results. Clear outperformers in the Mag 7 space from last week’s earnings were Amazon and Alphabet.
Single stocks with high sensitivity to U.S. elections tend to be those in industries or with business models that are heavily impacted by government policy shifts, including regulation, spending, and foreign policy. Here are some individual stocks to watch:
Equity outlook: The high cost of global fragmentation for US portfolios
Commodity Outlook: Commodities rally despite global uncertainty