Good morning, you're listening to Markets Desk.
The Fed's preferred inflation gauge came in cooler than expected in July, with core PCE rising three point three percent on an annual basis against forecasts of three point six percent. That's a meaningful undershoot, and it gives the Fed room to begin cutting rates in September without appearing to capitulate to market pressure. Expect bond yields to ease on the print.
Shifting to equities, Bill Ackman's Pershing Square has made a notable portfolio move — exiting Alphabet entirely while building positions in Microsoft and Meta Platforms. Ackman is betting on concentrated AI infrastructure plays rather than search-dependent revenue models. It signals a sharpening view on which platforms will actually monetize artificial intelligence at scale.
And on that note, Ed Yardeni — arguably the most consistently bullish voice on Wall Street — is urging caution on the AI trade specifically, even as he acknowledges he's underestimated the broader market rally. When the street's biggest optimist tells you to wait before chasing a theme, that's worth sitting with. Valuation discipline, he argues, still matters even in a secular growth story.
That's the tape. Markets Desk, signing off the floor.
