Good morning, you're listening to Markets Desk.
Here's what's moving the needle today. Beat-and-raise earnings seasons used to be rocket fuel for equities, but that calculus is shifting. With inflation proving stickier than expected, analysts warn that margin pressure is quietly building beneath the headline numbers, and investors are no longer rewarding guidance the way they once did.
Across the Atlantic, European shares are edging lower this session as technology valuations come under fresh scrutiny. AI spending commitments from major firms are drawing skepticism rather than applause, and traders are keeping one eye on the ECB rate decision, which could reset expectations for the policy path across the eurozone before the week is out.
Meanwhile, a different kind of market signal worth watching — IPO activity is surging, and at least one portfolio manager is calling it one of the four horsemen of a potential bubble. Strategists are divided, with most stopping short of sounding a full alarm, but the volume of new issuance is drawing comparisons to cycles that historically ended with painful corrections.
That's the tape. Markets Desk, signing off the floor.
