Charts & Chat - August 2, 2026

This week, CEO Eric Boyce, CFA discusses:

1. Fed leaves rates unchanged, but bias is up based on sticky inflation data. Bond market providing its own assessment of risk as Fed chair Warsh pulls back and long term rates move higher

2. Earnings estimates accelerating, creating higher valuations and risk if results fall short of expectations. Question of whether free cash flow growth and returns on investment can be achieved by AI firms.

3. inflation volatility adding risk to S&P 500 earnings; increasing divergence between sectors 

4. 2nd quarter GDP shy of expectations, as inventory drawdown and weak government spending was offset by positive consumer spending.