Markets are extending gains following a two-week U.S.-Iran ceasefire, with investors weighing whether the rebound signals a lasting shift or a short-term rally.
BNN Bloomberg spoke with Brianne Gardner, Senior Wealth Manager at Raymond James, who said easing geopolitical tensions are supporting equities, but inflation and central bank policy remain the key factors that could limit further upside.
Key Takeaways
- The ceasefire-driven rally could mark a bottom after the March selloff, though volatility is expected to persist.
- Inflation has become the primary constraint on markets, with future gains dependent on price data and central bank decisions.
- Market participation is broadening beyond technology into sectors such as financials, industrials and consumer stocks.
- Investors are favouring AI infrastructure over software, reflecting a more selective approach within technology.
- International equities are gaining attention as investors look beyond concentrated U.S. market leadership.
Read the full transcript below:
ANDREW: Markets surged yesterday after news of a two-week U.S.-Iran ceasefire. Brianne Gardner joins us now, senior wealth manager at Raymond James. Brianne, thanks very much for your time. You say inflation is still a key concern and may, in fact, be the main factor weighing on markets right now?
BRIANNE: Yes, I think everyone is watching this ceasefire very closely. With Trump announcing that two-week U.S.-Iran ceasefire and markets surging yesterday, we are starting to see a bit of a pullback again today. But I do think the bigger picture is that if this holds, it could mark the market bottom from the March selloff.
We deployed some capital over the past few days that we had on the sidelines, but we still have about seven per cent of our portfolio in cash. That is strategic and gives us flexibility. We do expect some short-term volatility, but we also want to take advantage of this market movement.
I think the market may have moved past geopolitical concerns, but now, as you mentioned, Andy, it is back to inflation. That is the real ceiling on this rally and will determine whether it can hold. The broadening of the market is real, and over the past several weeks we have started to see that play out.
It is a multi-week trend. Banks, airlines, industrials and consumer names have all been participating more. Yesterday’s headlines were more tech-led, which is typical in a relief rally, with oil and energy pulling back and growth names like Meta and Broadcom moving higher. But that does not break the overall trend.
We have been seeing more parts of the market participate, and that is a healthier setup going forward. We also saw a pullback in forward price-to-earnings multiples, which was a reset the market needed. There has been a strong inflow of capital, suggesting institutional buyers are returning. That signals this could be the start of a rebound, though it will likely be a rocky road.
ANDREW: Right. So you are saying it could be choppy. There is a lot going on. How are you playing tech stocks these days?
BRIANNE: We do expect volatility, especially in the first half of the year, and we have been quite vocal about that. We think there could be a year-end rally, but there is a lot of noise right now around tech.
We prefer AI infrastructure. That distinction matters. We saw Meta and Broadcom surge more than five per cent, while SaaS names like Salesforce were down. The market is clearly differentiating between hardware and semiconductors versus software.
From a tactical standpoint, we started taking profits on technology exposure earlier this year after the strong run. But in the short term, growth will likely continue to lead, so we still want exposure.
We favour companies powering the AI ecosystem rather than speculative names. Spending is real, earnings growth is durable and lower energy costs are a tailwind for data centres.
ANDREW: Amazon CEO Andy Jassy says the company is developing its own AI devices. It is remarkable to see these companies building their own chips. He says Nvidia has had the space to itself until now. Do you own Nvidia, and would you buy it here?
BRIANNE: Yes, we do own Nvidia, and we have trimmed along the way. I would not be opposed to owning it here, but it has not seen the same pullback as some other names. Microsoft, for example, is down roughly 23 to 25 per cent year to date.
From a value perspective, there may be other opportunities with more upside in the near term. Investors can also look to broader exposure through indices like the Nasdaq 100.
These large-cap names have significant free cash flow and will continue investing in AI. They are building out their own ecosystems, and it will be interesting to see how that evolves. The key question is who has the capacity, leadership and infrastructure to scale these models.
ANDREW: Let’s take a quick look at Amazon shares. They dropped earlier this year on concerns about heavy AI spending, but the company continues to double down, calling it a major opportunity.
BRIANNE: Yes, and I do think Amazon still has room to run. Spending has been a concern for several months, but now investors want to see that translate into earnings.
Earnings for the S&P 500 are expected to grow about 14 per cent year-over-year in the first quarter, with even stronger growth expected later in the year. These companies are continuing to reinvest in their business models, which is positive.
However, investors want to see that growth reflected in results. Sustaining very high growth rates may be difficult, but these companies will remain leaders.
We still see upside in the space, even if it is a shorter-term rally. Over the next six to 12 months, we are positioning more toward value and increasing international exposure.
We have been adding to markets such as Brazil, South Korea and other parts of Asia. These regions offer lower valuations, improving earnings and currency tailwinds. U.S. concentration remains high, and the next phase of performance may look different.
We are seeing a rotation beyond the largest tech names, and portfolios need to adjust. International equities remain under-owned and present an opportunity.
ANDREW: Brianne, thank you very much. Brianne Gardner, senior wealth manager at Raymond James.
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This BNN Bloomberg summary and transcript of the April 9, 2026 interview with Brianne Gardner are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
