Schwab Head of Macro Research and Strategy Kevin Gordon told Bloomberg This Weekend that AI-related technology stocks are supporting the broader market even as many individual companies have fallen much more sharply, leaving market leadership increasingly narrow.

Speaking with hosts David Gura and Christina Ruffini, Gordon said a gradual Federal Reserve tightening cycle and a labor market that avoids widespread layoffs could support stocks. He also said investors are increasingly focused on whether companies can sustain their large AI capital spending, according to Bloomberg.