2 min read
Forces Shaping Equity and Fixed Income Markets
David Hagee, Executive Vice President, Chief Investment Officer
:
October 20, 2026
Recorded October 20, 2026
Three distinct forces have shaped markets across 2026, geopolitical conflict and energy pressures, accelerating investment in artificial intelligence (AI), and a sharp rise in interest rates. In the latest episode of Conversations with Commerce Trust, Chief Investment Officer David Hagee is joined by Don McArthur, Director of Equity Research, and Brent Schowe, Director of Fixed Income and Manager Research, to examine how these forces have influenced market performance and what they may signal for the year ahead.
In this episode, they discuss:
- AI’s broader influence on corporate earnings: How investment in AI has been a catalyst for the U.S. economy and equity markets, driving earnings growth and shaping expectations for the broader market in the year ahead.
- Equity valuations and the growth outlook: What stronger-than-expected earnings mean for market valuations, and how consumer spending and corporate investment may influence growth in 2027.
- The forces driving interest rates higher: Why economic growth and persistent inflation are contributing to rising Treasury yields, and what these dynamics suggest about the Federal Reserve’s path.
- Developments in corporate credit: Where signs of stress are emerging in the high-yield market and how conditions differ across credit segments.
- Portfolio considerations across asset classes: How today’s fixed income yields, equity earnings expectations and evolving economic conditions offer an opportunity to evaluate asset allocation decisions.
Listen to the latest episode of Conversations with Commerce Trust for our investment leaders’ perspectives on the evolving market environment and the factors investors may consider as they look ahead.
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This summary is intended to provide general information only and may be of value to the reader and audience.
Past performance is no guarantee of future results. This material is not a recommendation of any particular investment strategy, is not based on any particular financial situation or need and is not intended to replace the advice of a qualified tax advisor or investment professional. While Commerce may provide information or express opinions from time to time, such information or opinions are subject to change, are not offered as professional tax, insurance, or legal advice, and may not be relied on as such.
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