Is the Magnificent 7 losing its luster? There’s a rotation taking place in global equity markets. The factors driving international markets have been different from those in the U.S. There’s been a shakeup in the poster child for international value. The U.S. economy has tailwinds going into 2026, but the benefits haven’t accrued to workers just yet. Checking in on the Fed. Emerging earnings. Digital gold. Winter wonderland.
1. The three largest S&P 500 companies (Microsoft, Nvidia, and Apple) are currently in a double-digit drawdown:
Source: @finviz_com via @RyanDetrick
2. Money leaving mega-cap tech must go somewhere:
Source: Deutsche Bank, @neilksethi via the Daily Chartbook on 1/12/2026
3. The value factor, which has disappointed U.S. investors for years, has worked in international markets as of late:
Source: John Authers, Points of Return
4. The Bank of Japan has managed to re-anchor inflation expectations:
Source: John Authers, Points of Return
5. Japan’s economic engine is showing signs of life:
Source: John Authers, Points of Return
6. GDP growth has been heavily distorted by trade in recent quarters, but it’s still notable that the third quarter saw the highest headline growth rate in two years:
Source: @charliebilello via the Daily Chartbook on 1/22/2026
7. The U.S. economy is expected to receive a large fiscal boost in 2026, as tariff effects are largely in the rearview mirror and taxpayers are expected to receive large refunds from backdated tax cut:
Source: Dario Perkins, TS Lombard via the Daily Chartbook on 1/15/2026
8. Recent productivity growth has yet to boost real earnings growth:
Source: Neil Dutta
9. Rick Rieder is now the favorite to become the next Fed chair. A move that Wall Street would likely endorse:
Source: John Authers, Points of Return
10. However, no matter who the new Fed Chair is, Wall Street doesn’t expect a big shift in policy:
Source: John Authers, Points of Return
11. For the first time in a long time, emerging market earnings expectations have reached a new high:
Source: Goldman Sachs, @mikezaccardi via the Daily Chartbook on 1/23/2026
12. Digital gold may be a misnomer:
Source: Bloomberg Markets Daily
13. After nearly two feet of snow, it’s definitely feeling like winter in Boston, though not quite like a wonderland:
Source: AIM
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