Bloomberg Surveillance TV: August 7th, 2026

**Jonathan Ferro** (0:11)
This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferro, along with Lisa Abramowicz and Annmarie Hordern. Join us each day for insight from the best in markets, economics and geopolitics. From our global headquarters in New York City, we are live on Bloomberg Television weekday mornings from 6 to 9am Eastern.
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We begin this app with stocks pairing modest losses, holding their all-time highs. Chris Verrone of Baird Strategas writing, with the S&P 500 rallying with such potency, there's also likely some value in identifying what is not exhibiting similar vigor. Chris joins us now for more. Chris, good morning. Good to see you.

**Christopher Verrone** (0:51)
Great to be here.

**Jonathan Ferro** (0:52)
What is not exhibiting similar rigor?

**Christopher Verrone** (0:54)
Well, I would say on balance, this has been a very good rally, certainly the last week, but just go back the last six, seven, eight weeks, they threw everything they could at this market, whether it was bond yields, whether it was oil, whether it was the war, and the best they could do was maybe a two or three percent drawdown in the S&P. Extremely rotational tape. We've been observing for weeks and weeks that the internals have been getting better, not worse here. Now, there are some pockets of maybe the market that are a little bit squirming here, the utilities as an example. I think there's a political crosswind that's started to impact a number of those names, particularly on the power producer side, the CEGs and the Talons and the Vistras. But I'd say on balance, 75 percent of the S&P is above the 200-day right now. That's about as broad as we've seen in two or plus years.

**Jonathan Ferro** (1:39)
Is this bond market close to becoming a problem?
Speaking of squirmy, you know how it's funny. You had a little curve in the last week. Go on, give me your thoughts.

**Christopher Verrone** (1:46)
I'm going to tell you something that I think might surprise you here. So it's, we're 400 days since Trump 2 started in January of 25 That 400-day period, the range of the tenure yield to 85 basis points. It's the lowest 400-day range in history.
Go back as long as you want.
Bonvol is very, very muted right here, right? I think when you look at what the reaction function from Treasury or from the administration has been, it has, or I think the goal is to limit Bonvol, preserve optionality. And when you look at one of the tightest 400-day ranges in history, I think that certainly speaks to that.

**Lisa Abramowicz** (2:26)
Wouldn't you think, though, that less communication would introduce Bonvol?

**Christopher Verrone** (2:30)
So, you think so, but the market response has been entirely different as far, I mean, even from the Fed last week, two-year yields are lower, not higher, 30-year yields is flat.
Double B corporate spreads, you know, talking about Alphabet going to the bond market, why wouldn't you? Double B corporate spreads are on the tights right now. So, I think the things that we look at to kind of gauge the health of the economy of the bond market and the equity market are still pretty much in check. I mean, every bank stock around the world is at new highs right now. Credit conditions everywhere are about as benign as it gets. I'm not saying those things can't change, but if you're looking at the landscape today and try to evaluate in the present moment, are conditions still supportive? I think they are.

**Lisa Abramowicz** (3:14)
Well, I think that the equity market is telling you that with the fastest kind of whipsaw back to oversold that we've seen in modern history or one of the fastest reversals. Bank of America's index says that we're now the most oversold or over bullish in terms of sentiment going back to 2021
Is that a sell indicator to you? Is it the same way that it is to Michael Hartnett?

**Christopher Verrone** (3:34)
I think you need bulls for bull markets.
So I'm not as convinced that, you know, when you look at and, you know, we've dived into this for years and years and years. Sentiment at tops is not very helpful. It's very helpful at lows, right? Fear and panic is a much more actionable emotion than the greed that's often found at top. So listen, we're very mindful that, you know, as this market has made new highs, have certainly, I think, seen the attitudes get a little bit spicier here. I would yet to say that we're in that, you know, everyone is completely all in. There's no buyers left. I don't think we're at that point yet.