As September unfolds, investors are bracing for turbulence. The latest episode of the podcast DH Unplugged, titled “Strikes, Spikes, Hikes,” paints a picture of a market turning “elephanty,” with hosts Andrew Horowitz and John C. Dvorak offering a skeptical take on the forces shaping the final stretch of 2026.
The episode, released September 1, zeroes in on renewed U.S. bombing of Iran, which has sent crude oil surging roughly 13% in two weeks to about $91.80. Diesel crack spreads are flashing inflation warnings, adding another layer of concern for consumers and policymakers alike. Meanwhile, bond yields are climbing, reflecting growing unease about fiscal policy and institutional trust.
Horowitz, a seasoned financial advisor, didn’t mince words when discussing the administration’s economic messaging. “The administration is the boy who cried wolf right now,” he said, adding that Treasury Secretary Scott Bessent has “gotten a little bit crazed trying to manipulate the markets.” Dvorak linked the bond market moves to a broader erosion of confidence, arguing that “it’s a series of very large trust factors.” He warned that tariff escalation echoing the Smoot-Hawley tariffs would signal America no longer believes it can compete.
Amid the macro noise, corporate earnings offered bright spots and cautionary tales. Dell blew past expectations with fiscal 2027 EPS guidance near $25.50, up from $18.99 prior, buoyed by a 40% data center market share. Nvidia is reportedly pursuing Hugging Face for $12.9 billion, a deal that has stirred tensions between Jensen Huang and Sam Altman. On the downside, Dick’s Sporting Goods plunged roughly 30% as Foot Locker comps fell 3.6%. Target faced a Halloween costume backlash over a clown outfit, underscoring the risks of brand missteps.
The hosts also tackled government equity stakes in Intel, MP Materials, and Trilogy Metals, and the lawsuit challenging the Intel arrangement. Horowitz, who disclosed a short position in Intel, questioned why Washington gets discounted shares that retail investors never see. Dvorak contrasted the U.S. approach with China’s state-owned enterprise model and highlighted GLM 5.3 Flash from Chinese lab Z.ai, reportedly trained without a single Nvidia chip.
Geopolitical tensions remain high, with President Trump threatening that Iran will be “totally wiped out as a country” if it retaliates again. The hosts also touched on LEGO’s 21% first-half revenue jump and the growing scrutiny of the “baseball-card casino economy” by Japanese regulators. Looking ahead, Friday’s August payrolls, ADP, JOLTS, and ISM data will provide crucial signals.
In a wide-ranging discussion, Horowitz and Dvorak underscored that currencies, equities, and private valuations all rest on one thing: trust. As they navigate a complex landscape, their unfiltered commentary offers a unique lens for investors trying to make sense of a market in flux.
