AI resurgence buoys S&P 500 amid 14% average stock drawdown since August
Bloomberg Television interviewed Schwab's Kevin Gordon on the narrow market rally powered by AI and tech stocks after a summer consolidation, contrasting the cap-weighted S&P 500's modest decline with widespread individual stock drawdowns. The segment discussed supply-driven inflation requiring a new Fed framework, recent Fed speakers providing forward guidance on a measured pace of tightening, resilient consumer spending supported by jobs and savings drawdowns, and retailer preparations for holidays amid price hikes and tariffs. Gordon highlighted low layoff activity outside tech and financials, strong earnings beats shifting focus to CapEx, and upward revisions to S&P earnings growth expectations. Sourcing relied on the guest's analysis, referenced Fed officials (John Williams, Philip Jefferson, Austan Goolsbee), recent economic data releases (jobs report, personal income and outlays), and internal Schwab research. No anonymous sources; graphics were implied for market stats but not detailed in transcript.
Source: Bloomberg Television