Bloomberg Surveillance · Thursday, September 3, 2026
Keith Leonard of Truist observes that the stock market is transitioning from a strong earnings season to a more contentious macroeconomic discussion, with interest rates now taking center stage. He notes that while high yields haven't been a problem for equities recently, this dynamic might be changing. Leonard suggests the market faces two-sided risk, with the Federal Reserve pricing in a greater than 60% chance of a rate hike, but also the possibility of a pause.
“the market is moving from a powerful earnings season to a more two-sided macro debate with interest rates taking center stage.”
“the 10-year is kind of playing with all of us because it's staying around this 480 level, which is an important technical level.”
“So I think it's a two-way risk. And it is all about rates in the short term, as opposed to this earnings season, which was really one-sided.”