In this morning's edition of the MPC Markets Morning Call, Mark Gardner discusses the recent record highs in the S&P 500, the performance of various sectors, and the implications of economic indicators. He highlights concerns surrounding Oracle and AI, the strong performance of the Russell 2000, and the undervaluation of the materials sector. The conversation also covers the commodities market, particularly silver and gold, and concludes with insights into the 2026 market outlook and investment strategies.

takeaways

• The S&P 500 reached a new record high despite concerns about Oracle.

• There are significant worries regarding the financial viability of AI deals.

• The Russell 2000 has performed impressively this year, matching the S&P 500.

• Market sentiment plays a crucial role in short-term performance.

• Eli Lilly's new obesity drug shows promising results, boosting its stock.

• Silver prices have surged, indicating strong market momentum.

• The materials sector remains undervalued compared to tech stocks.

• Gold is currently cheap relative to other commodities, suggesting potential for growth.

• 2026 is expected to be a challenging year for index investors.

• The ASX is perceived to be undervalued, with potential for recovery.