Markets holding steady as President Trump looks to remove Fed Governor Lisa Cook from the board of the central bank during an already busy market week with investors awaiting Nvidia earnings, PCE inflation and more. Naveen, head of equities and fixed income and chief investment officer Sarah Malik joins us now. Sarah, it's good to see you this morning.Um, bundle it all together. I mean, we had this nice rally on Friday. It felt as if the market heard what it wanted from from Jay Pal about the possibility of ...

Market Overview & Economic Factors - Late August is expected to have low liquidity, and September is traditionally the worst month for the S&P 500 [2] - Earnings are expected to grow over 10% year-over-year, about double the consensus [2] - Weak payrolls data (around 73,000) and ISM data raise concerns about the economy [3] - Uncertainty surrounding the next Fed chair is making markets nervous [3] NASDAQ & Tech Sector - The NASDAQ is considered a favorable investment area due to the AI trend, moderating 10-year Treasury yields, and its appeal during economic slowdowns [5] - The AI boom is still active, with companies continuing to invest tens or even hundreds of billions in AI [6] Interest Rates & Fed Policy - A weak August payrolls report could lead to a 25 basis point rate cut, and a 50 basis point cut should be considered [7] - A 4% to 4.5% range is expected for the 10-year Treasury yield for the rest of the year, assuming the economy shows signs of slowing [8] - The Fed is closely watching employment markets, balancing this with the impact of tariffs on inflation [10] - The base case is a 25 basis point rate cut in September, unless August payrolls are significantly weaker [11] - A one-time bump in inflation is expected due to tariffs, but core inflation is trending towards the Fed's target [12] Investment Opportunities - Infrastructure is favored, driven by increased investment in the US on both public and private sides [13][14] - AI data centers and upgrading electrical grids are key areas within infrastructure [14] - Utilities are a strong play for infrastructure, needed to fund electricity for AI and upgrade grids for renewable energy [16]

Labor Market Trends - Employment markets are showing a clear signal of slowing down significantly, despite previously solid levels [1] - Revisions in the previous two months indicate a notable downward trend in employment [1] - Unemployment rate stood at 41%, with solid wage and employment growth previously [3] Inflation and Economic Risks - Core PCE inflation rate was at 28% and not moving towards the 2% target [2] - Prior to this week, the risk to inflation was considered greater than the risk to employment [2] - Recent data suggests the economy and labor market may be weakening more broadly [4] - Risks to the employment side of the mandate are becoming more balanced with those of inflation [4] Policy Implications - The appropriate path for policy needs to be re-evaluated in light of the new data and revisions [4] - The extent to which the labor market slowdown is a temporary move or a persistent trend remains uncertain [2]