Today, a look at the market returning to its past form as AI-related hardware stocks ripped higher even as the median stock on the S&amp;P 500 posted a negative day. Also, a look at the many interesting earnings reports up next week, a rundown of the action in FX after massive USDJPY intervention and a Bank of Japan meeting and much more. Today&#x27;s pod is hosted by Saxo Global Head of Macro Strategy John J. Hardy. John&#x27;s The FX Trader piece from today. About twice per week (in normal times, hopefully soon to resume), you will find links discussed on the podcast and a chart-of-the-day over at the John J. Hardy substack. Read daily in-depth market updates from the Saxo Market Call and the Saxo Strategy Team here. Please reach out to us at marketcall@saxobank.com for feedback and questions. Click here to open an account with Saxo. Intro music by AShamaluevMusic DISCLAIMER This content is marketing material. Trading financial instruments carries risks. Always ensure that you understand these risks before trading. This material does not contain investment advice or an encouragement to invest in a particular manner. Historic performance is not a guarantee of future results. The instrument(s) referenced in this content may be issued by a partner, from whom Saxo Bank A/S receives promotional fees, payment or retrocessions. While Saxo may receive compensation from these partnerships, all content is created with the aim of providing clients with valuable information and options.

Momo trade roars back to life, but for how long?

Saxo Market Call

Welcome to the Saxo Market Call. Before we get started, it's important we emphasize that the views and opinions expressed in this podcast are those of the hosts and guests and do not constitute investment advice or recommendations. All information provided is for educational and entertainment purposes only.

Hey everyone, it is Friday, 31st of July, 2026, rounding off the summer month here. And just ahead of that, we had yesterday's session in the U.S., a wild one. Boy, we got things wrong with the reaction to the FOMC.

We felt like we had some kind of chance at a regime shift, I think, the day before the FOMC, seeing some potential for a positive reaction to it, given how we'd seen this very large correction in the momentum stock space. Clearly, we'd sort of cleared out a lot of the leveraged players who've been wiped out in these leveraged ETFs, etc. And instead, we got kind of a very broad risk-off session on the back of the FOMC.

And it felt like maybe some of the correlations were changing. But yesterday then, you know, reverting fully back, almost with some extra mustard, to the prior regime of these very negative correlations, the momentum stocks, AI hardware-related and otherwise, just having an absolute banner of a day. The S&P overnight was up almost 18%, 1.8%.

SanDisk up 26%, the top gainer on the S&P 500 yesterday. And then the broader market, if you look at the S&P 500 equal weight, actually down two-tenths of a percent. So just one of these classic days. It just puts us fully back into the frame of this, you know, sort of shades or echoes of the year 2000 with the tech and telecom stocks that were, you know, in bad correction mode starting...

Momo trade roars back to life, but for how long?

Read the full transcript

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

Momo trade roars back to life, but for how long?

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.