Stock Market Shakeout

The conversation centers on recent volatility in the US equity market and key debates among investors. Shawn Tuteja, head of ETF and custom baskets volatility trading at Goldman Sachs, explains that despite the S\&P's modest gains, significant tensions exist beneath the surface, including whether the rally is broadening beyond the Magnificent Seven and the AI trade. He notes a shift towards international equities and highlights the potential disruption of AI investments on the broader market, particularly software. Tuteja suggests the market was overextended, leading to a risk reduction, but maintains a bullish outlook, contingent on the AI trade's continued success and fiscal responsibility. He recommends buying the dip, especially in industrials and select large-cap tech, focusing on companies leveraging AI for productivity gains.