Power Lunch 8/14/26

**SPEAKER_1** (0:00)
Did you know that NeuroSymbolic AI can help your business find new ways to make money? EY Parthenon is the only one offering this groundbreaking growth platform. NeuroSymbolic AI analyzes hundreds of millions of data points to reveal new growth strategies. EY Parthenon teams deploy this innovation so you can uncover hidden value and scale beyond existing boundaries. Want to know what NeuroSymbolic AI can do for your business? Contact EY Parthenon today. Solutions that work in practice, not just on paper.

**Steve Sosnick** (0:30)
Courage. I learned it from my adoptive mom.

**SPEAKER_4** (0:33)
Hold my hand.

**Rick Santelli** (0:33)
You hold my hand.

**SPEAKER_4** (0:36)
Learn about adopting a team from foster care at adoptuskids.org. You can't imagine the reward. Brought to you by AdoptUSkids, the US Department of Health and Human Services and the Ad Council.

**Brian Sullivan** (0:51)
A record-setting week coming to a close as one big group of stocks comes roaring back. Welcome to Power Lunch, everybody. Alongside Kelly, I am Brian. We've been hearing all week, momentum shifting away from tech. Uh-uh, not so fast. It is software, memory and chips, Kelly, back in the driver's seat.

**Kelly Evans** (1:09)
And how about software? Some names surging this week, while others are still falling just as fast. We'll examine the split, what's behind it? Where does the sector go from here? Citi's Tyler Radke will talk about that. And the classic car market Brian is shifting gears. More than 1,000 cars are headed to the auction block in Monterey, but it's a good thing in this case, don't worry. What's hot, what's not, and what's losing its luster? That's all ahead.

**Brian Sullivan** (1:34)
I don't know if you watch The Simpsons, but Homer Simpson, whenever he thinks about a donut, he gets this drool, and he goes, oh, donut. I'm looking at those cars, and that's kind of what I'm thinking. We'll get to that with Robert Frank here in a few minutes, but we're going to start, oh, there we go.
We're going to start with the markets and your money because we are headed for another good week. And if we close higher on the S&P 500, and it's close, by the way, we may not, it will be the index's third higher week in a row. There's a couple of market points, though, that stand out inside the market. First off, your top sectors this week, I mean, energy, just blowing the doors off everybody up 7.3%, utilities and staples also both higher. There's your sectors, but from a specific index perspective, the economically sensitive small caps, they just keep rocking. The Russell 2000 making record highs again, heading for another close above 3000 The Russell 2000 has soared 45% in just two years. Wow. Let's talk about all of this with your two smart guests to kick things off. Sylvia Jablonski is CIO and co-founder of Defiance ETFs and Steve Sosnick, chief strategist at Interactive Brokers. Welcome. Happy Friday to both of you.
Sylvia, first off, from a macro ETF perspective, we're pointing out, small caps, where are you seeing your customers, your clients? Where is their buying interest right now?

**Sylvia Jablonski** (3:03)
Well, I think you said it really well in the introduction. When I was drooling?

**Brian Sullivan** (3:06)
Yeah.

**Sylvia Jablonski** (3:07)
Not the cars necessarily. Flying cars and why would they be flying cars? Because of AI. So the flows are right back to AI power and infrastructure. They're right back to quantum computing. They're back to the AI trade. The single stocks are the microns, the Palantir's, basically everybody who was kind of punished for the last couple of weeks around geopolitical news and potential Fed tension, all of these things. Earnings became the clearing event for the market and here we are again. What does that mean?

**Brian Sullivan** (3:34)
Earnings became the clearing event?

**Sylvia Jablonski** (3:36)
Well, the AI hyperscalers delivered.
I think that the spend is coupled with monetization now. We got a clear picture of backlog and orders and where the AI trade is going that money will be coming from this. And the market was satisfied with what they saw. Eighty-five percent of the names meet or beat on the top bottom line.

**Kelly Evans** (3:53)
Obviously, you're always looking at those innovative part. You're flying cars, please.

**Kelly Evans** (3:57)
Absolutely.

**Kelly Evans** (3:58)
Is there anything in the AI buildout that you see slowing down? Or we're talking again about these data center moratorium, the risk may be a little bit higher going into the midterms, but then more money. Look at the drone names today, by the way, on that news that there's going to be tariffs, I guess, that would benefit the US makers.