Bloomberg Surveillance AI Angst Leads Election Day Stock Selloff
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Nov 4, 2025 Meera Pandit, a Global Market Strategist at J.P. Morgan, discusses the balancing act of AI optimism against valuation concerns and market volatility. Jennifer Lee, Senior Economist at BMO, analyzes sentiment data and inflation expectations that could shape Fed policy, predicting a December rate cut amidst a government shutdown impact. Former U.S. Representative Patrick McHenry weighs in on Election Day outcomes and anticipates a resolution to the shutdown before Thanksgiving, hinting at broader implications for midterm politics.
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Financials Powering Earnings Surprise
- Pandit highlights financials as an unexpected earnings standout contributing to robust S&P EPS growth outside tech.
- She notes financials' consumer exposure and deregulatory tailwinds helped drive double-digit subsector growth.
Uncertainty Is Driving Market Moves
- Jennifer Lee frames current market moves as driven by uncertainty across policy, trade, and macro signals rather than a single clear catalyst.
- She suggests that uncertainty is prompting varied views and higher market sensitivity to new information.
Expect Another Fed Rate Cut
- Jennifer Lee expects the Fed to slow policy and anticipates another 25 basis point cut in December barring worse shocks.
- She warns that prolonged shutdowns or elevated uncertainty would increase the case for easier policy.