The bullish case for the AI capex spenders, rather than the receivers. Cybersecurity expert Ivan Tsarynny’s AI warning after Anthropic discloses three of its models breached their testing environments. Plus, Brookings’ Robin Brooks on how the market has corrected its misreading of the June Fed meeting.<br><br>Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The Spending Shift, Model Mayhem, and Wrong on Warsh? 7/31/26

The Exchange

Thank you very much, Mike. The broader averages are pretty resilient today as Amazon soars, Apple falls, and shadow yields seem to be bursting to the fore. I'm Kelly Evans, and welcome to The Exchange. Don't look now, but Treasury yields are jumping today. The 10-year above 4.7 percent, and the long bond eyeing 5.3. It feels like the new Fed chair is winging it, or so says The Wall Street Journal's Greg Ip. He joins us in just a moment.

Plus the implosion of the Mag 7, at least as a trading moniker. Today it's Amazon soaring while Apple sinks after their earnings last night. Matt Maley weighs in on the trade and the AI race. And look at these moves for chips and software this week. Sandus swinging from a multi-month low to a historic high. And that's where we begin today. Because here is where our first guest is seeing the biggest opportunity. Steve Whiting is chief investment strategist at CIO Group. It's great to have you here. Thank you.

So is it the software part of the market? I mean, should we back out for a second and kind of just what is the lay of the land now? Big picture, this is a little bit of hardware mania. If you think semiconductors, tech hardware, are at about 30 percent of the S&P market cap. What that's really telling you, a close approximation, is that this is really the market saying that 30 percent of all future U.S. corporate profits are going to be tech hardware makers. And may that be true or no?

The Spending Shift, Model Mayhem, and Wrong on Warsh? 7/31/26

Read the full transcript

The candid version is on a podcast,
not the earnings call.

The Spending Shift, Model Mayhem, and Wrong on Warsh? 7/31/26

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.