Eddie Ghabour Sees Fed Roadblocks Ahead, "Healthy" SPX Equal Weight Rally

• July CPI print was in line with expectations, but Ghabour anticipates Fed tightening in September, likely via balance sheet reduction, despite it not being a consensus view.
• He expects a market correction in late August/September, presenting a buying opportunity, with a year-end S&P target potentially above 8000.
• The Equal Weight S&P (RSP) hitting new highs indicates a healthy, broadening market rally beyond just technology stocks.
• Favors Eli Lilly (LLY) due to accelerating GLP-1 growth and international expansion, and software names like Unity Software (U) due to lower earnings expectations, but advises caution on tech during Fed tightening.

Eddie Ghabour discusses the July CPI print, anticipating a Fed tightening move in September, likely through balance sheet reduction rather than rate hikes. He expects a market correction in late August/September, which he views as a buying opportunity, projecting the S&P to reach new highs by year-end. He highlights the broadening market rally, evidenced by the Equal Weight S&P, and favors healthcare and software sectors.