Bloomberg Surveillance Bloomberg Surveillance TV: February 5th, 2026
Feb 5, 2026
Liz Ann Sonders, Charles Schwab strategist on macro and market rotation. Chris Caso, Wolfe Research semiconductor analyst tracking AI capex and chip competition. Edward Mills, Raymond James Washington policy analyst on U.S.-Iran talks and geopolitical risk. They discuss market rotation beyond mega-cap tech, who benefits from massive cloud and AI spending, semiconductor competition, and geopolitical headlines that move markets.
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Episode notes
Rotation Is The New Momentum
- Rotation has become the new momentum trade, shifting flows away from a few mega-cap winners into broader sectors.
- Liz Ann Sonders says this broadening is supported by fundamentals and likely to continue in the near term.
Earnings Direction Trumps Absolute Growth
- Earnings trajectory matters more than absolute growth: the Magnificent Seven still grow faster but their direction is slowing.
- Liz Ann Sonders highlights improving earnings direction for the broader 493 stocks as a reason for market breadth.
Fade Extremes When Rotation Overheats
- Expect to fade extremes as rotation-driven momentum can overshoot and create pockets of excess.
- Liz Ann Sonders advises investors to tolerate a gradual internal re-pricing rather than panic at abrupt index moves.