Liz Ann Sonders
@LizAnnSonders
Chief Investment Strategist, Schwab Center for Financial Research. Disclosures:
786 Following 852.4K Followers
Employment Cost Index (ECI), which measures changes in wages/salaries and benefits, rose 0.8% in 3Q26 vs. 0.9% in 2Q26 … labor costs advanced 3.4% on a year/year basis, but trailed headline CPI inflation, which grew 3.7% in September
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Great new report highlighting our growing work on factor-based investing by my brilliant colleagues Chris Ferrarone and Adam Lynch
Our latest #OnInvesting# podcast episode has dropped, on which @CollinMartinCS and I dissect the latest Fed meeting, as well as concerns about AI infiltrating both the equity and bond market:
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Business investment jumped +12.7% in 3Q26, the most since 3Q20, thanks to AI investment and buildout
5 of Thursday’s best charts and insights:
Upward moves for supercore CPI and PCE in September, with both heading in the wrong direction and further away from the Fed’s 2% target
Real final sales to private domestic purchasers (tracks consumer spending and private fixed investment) accelerated to +4.9% in 3Q26, from +4.6% in 2Q26
September core PCE #inflation# came in hot on a 3-month annualized basis …+2.9% vs. +2.2% prior
September personal savings rate down to 3.8% ... first time with a 3-handle since 2022
Sectors/indexes yesterday and MTD/YTD
Rolling correlation between 10y yield and S&P 500 continues to shoot higher
Index drawdowns and % outperforming (big jump in % outperforming over past month)
Initial 4Q2026 real GDP estimate (a “nowcast,” not a forecast) from @AtlantaFed GDPNow model is +3.2%
Bullish sentiment ticked up to 37.8% vs. 36.9%, just a hair above its historical average of 37.5%, according to @AAIISentiment (week ending 10/28/26); % of bulls fell to 41.4% vs. 45.8% ... this week’s special question polled AAII members on what type of stocks they are favoring right now
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Looking forward to joining @timsteno and @carolmassar on @BloombergRadio around 4:20pm ET today live from Schwab’s #IMPACT2026# conference
Looking forward to joining @michaelsantoli and @SaraEisen on @CNBC @SquawkStreet around 11am ET this morning … where I’ll be live from Schwab’s #IMPACT2026# conference in Boston
AI-driven inflation eased in September, contributing just 0.82bps to headline PCE #inflation#, down from December’s peak of 4.60bps @economics
