Equities ended higher last week as fresh data showed weakness in the labor market, strengthening the case for the Federal Reserve to lower interest rates in September. With the mega growers continuing their highs, it continues to be a tale of two markets, making today's guest rethink the bullish broadening thesis. Joining the show today to share his latest market thesis and the macro themes moving markets this week is Fidelity Director of Global Macro Jurrien Timmer. Jurrien points out the dual impact of favorable inflation data and slower job growth, setting the stage for potential Fed action. He also notes the market's relatively calm reaction to recent political events, presenting historical data that suggests presidential elections have limited long-term impact on market returns. Jurrien speaks to the bifurcated nature of the current bull market, where a few mega growers dominate while broader market breadth remains narrow, posing challenges for stock selection as the gap between top-performing stocks and the rest of the market continues to widen.

Recorded on July 8, 2024.

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