Business
Broadway record ticket sales show consumers splurging on experiences
Daniel Radcliffe takes a bow onstage during curtain call at “Every Brilliant Thing” Opening Night at Hudson Theatre on March 12, 2026 in New York City.
Theo Wargo | Getty Images
Broadway just wrapped its highest-grossing season on record, offering another sign that consumers are willing to spend on experiences even as concerns about inflation and economic uncertainty linger.
The 2025-2026 show season topped the prior year’s record and generated nearly $1.91 billion in ticket sales, according to industry data from The Broadway League.
“Even in a challenging economic environment, Broadway remained notably on par with last season, reflecting both the resilience of this industry and the connection audiences feel to these productions,” said Jason Laks, president of The Broadway League, in a press release.
Adjusting for the extra week that was included in the prior season, Broadway grosses this year rose 3.5%, attendance increased 1.8% and average ticket prices climbed 1.7%.
This comes ahead of Sunday’s Tony Awards, setting a high-stakes background for the industry’s biggest night. The awards often lead to further ticket sales for winning shows.
While consumers have pulled back in some discretionary categories, demand for live entertainment has remained remarkably strong — from concerts and sporting events to theater.
The New York Fed’s beige book has made explicit mentions of Broadway nearly a dozen times over the last two decades as an economic indicator, most recently in April saying “ticket sales remained strong.”
But Broadway’s record year highlights a growing question: Have live performances become too expensive to balance rising production costs?
The average Broadway ticket cost $131 this season. For a family of four attending a musical, tickets alone can easily exceed $500 before accounting for transportation, meals and other expenses. In many cases, premium seats cost significantly more. At higher rates, the total expenses start to rival a one-day trip to Disney World for a family of four.
Rising Broadway prices
The industry’s growth is increasingly being driven by high-priced plays featuring major celebrities rather than traditional blockbuster musicals.
The 2025-2026 season opened 35 new productions: 12 musicals, 21 plays, and two specials. Existing intellectual property counts for three of the four nominated best new musicals, including an adaptation of the Apple TV series “Schmigadoon,” the 1980s cult-classic film “Lost Boys” and a parody of the Oscar-winning film “Titanic,” titled “Titanique.”
(L-R) John Riddle, Layton Williams, Constantine Rousouli, Jim Parsons, “Titanic” film star Victor Garber, Frankie Grande, Marla Mindelle and Melissa Barrera pose backstage at the hit musical “Titanique” on Broadway at The St. James Theatre on June 1, 2026 in New York City.
Bruce Glikas | Wireimage | Getty Images
“Producers are becoming far more selective about the economics of a project,” said Broadway producer Jim Kierstead. “There’s greater emphasis on recognizable titles, built-in audiences, limited runs, strategic casting, and productions that can generate additional life beyond Broadway through touring, licensing, or international productions.”
The final week of the current season, which ended May 24, brought in $40.7 million across 40 productions, according to The Broadway League. A revival of “Every Brilliant Thing” starring Tony-nominated Daniel Radcliffe led ticket sales.
It’s a similar trend to last season’s box office, which was led by limited-run plays starring Hollywood names like George Clooney, Denzel Washington and Jake Gyllenhaal. The star-studded titles allow producers to charge premium prices while avoiding the massive costs and risks associated with launching a new musical.
And it’s the plays, rather than musicals, driving higher attendance. This season, attendance at plays surged almost 14%, while attendance at musicals fell 4.7%.
That’s good news for sales, since plays typically commanded higher average prices, at $139.55 per ticket compared to $128.83 for musicals.
The 21 plays released this season grossed roughly $463 million combined, more than double the category’s haul from just two seasons ago and the second consecutive year that plays topped $400 million in revenue.
Experts say rising tickets prices are a reflection of not just demand, but also the costs to put on a good show.
“The financial hurdles are significant,” said Kierstead.
“Ultimately, the industry understands that long-term sustainability depends on keeping Broadway both economically viable and culturally accessible. If audiences feel priced out, everyone loses,” he added.
— CNBC’s Robert Hum contributed to this report.
NEW YORK — The Russell 2000 Index declined sharply Friday, dropping about 49 points or 1.66% to trade near 2,886.50 in morning action, as small-cap stocks joined broader market weakness triggered by a technology selloff and stronger-than-expected May employment figures that reduced expectations for near-term Federal Reserve rate cuts.
The small-cap benchmark, which tracks approximately 2,000 smaller U.S. companies, has demonstrated resilience throughout 2026 but proved vulnerable to the prevailing risk-off sentiment. The decline highlights small-caps’ sensitivity to interest rate trajectories and profit-taking after periods of relative strength against larger indices.
Friday’s trading reflected ongoing rotation out of high-growth sectors following disappointing guidance from key semiconductor names like Broadcom. The robust jobs report, showing 172,000 new positions added — well above forecasts — reinforced a resilient labor market, pushing Treasury yields higher and dialing back hopes for imminent monetary easing.
Impact of Economic Data on Small-Caps
Smaller companies often rely more heavily on domestic borrowing and consumer spending, making them particularly responsive to rate expectations. Higher yields increase financing costs, potentially slowing expansion plans and pressuring valuations for firms with significant debt loads or growth-oriented business models.
The “good news is bad news” dynamic for equities was evident once again, as positive employment data raised concerns about the Fed maintaining higher rates longer to guard against inflation. This environment typically favors larger, more established companies in major indices like the Dow and S&P 500 over the Russell 2000.
Sector Performance and Market Rotation
Within the Russell 2000, financial and industrial stocks showed mixed results. Some banks benefited from steeper yield curves, while others faced headwinds from cautious lending outlooks. Technology and health care components, areas that had driven recent gains, contributed notably to the downside amid the broader tech pullback.
Energy names fluctuated with oil prices, influenced by geopolitical developments in the Middle East. Consumer discretionary and retail stocks faced pressure from uncertain spending patterns despite resilient employment. The index’s diversification across sectors provided some buffer, but overall correlation with Nasdaq weakness dominated the session.
Analysts described the move as part of a healthy market rotation rather than a fundamental shift. Money has been flowing from overheated growth areas into value and defensive plays, a pattern observed multiple times in 2026 as investors reassess valuations after the AI-fueled rally.
Russell Reconstitution and Technical Factors
The June 2026 Russell reconstitution, with annual updates to index membership, may have added to intraday volatility as passive funds and active managers adjusted portfolios. This semi-annual process influences trading volumes and can create temporary dislocations for newly added or removed companies.
Trading volume in Russell 2000-related products was elevated, reflecting heightened investor caution. Technical levels suggest the index is testing recent support zones, with potential for short-term bounces if bargain hunters emerge or if upcoming inflation data softens rate hike fears.
Year-to-Date Context and Small-Cap Resilience
Despite Friday’s decline, the Russell 2000 remains up significantly for the year, benefiting from broader economic recovery and increased participation beyond mega-cap technology names. The index’s performance reflects improving sentiment toward smaller firms as the economy demonstrates stability and corporate earnings hold up.
Many small-cap companies have reported solid first-quarter results, with particular strength in sectors tied to infrastructure, domestic manufacturing and niche technology applications. However, challenges persist, including supply chain issues, labor costs and competition from larger rivals.
Broader Market Implications
The Russell 2000’s movement provides insight into the health of the broader U.S. economy. Small businesses and companies often serve as early indicators of economic shifts, making the index a closely watched barometer alongside major averages. Friday’s session underscored a maturing bull market where leadership is broadening, even as periodic corrections occur.
Geopolitical uncertainties and energy market fluctuations added another layer of complexity. While some small-cap energy producers could benefit from higher oil prices, overall market risk aversion weighed on sentiment.
Investor Considerations and Outlook
For investors, the current environment emphasizes the importance of diversification and a long-term perspective. Small-cap exposure can offer growth potential and portfolio balance, particularly if the Fed eventually eases policy. However, near-term volatility tied to economic data releases warrants caution.
Looking ahead, focus shifts to upcoming inflation reports, consumer spending figures and corporate earnings from smaller firms. Analysts generally maintain a constructive outlook for small-caps over the medium term, citing reasonable valuations compared to large-caps and potential benefits from domestic-focused policies.
The Russell 2000’s 52-week range illustrates both its upside and capacity for pullbacks. With the index still well above prior-year levels, Friday’s decline may represent consolidation ahead of fresh catalysts rather than the start of a deeper correction.
Market participants will monitor whether the jobs data alters the Fed’s path or if subsequent indicators point to cooling. In a landscape defined by technological change and macroeconomic crosscurrents, small-cap stocks continue to play a vital role in capturing opportunities across the American economy.
As trading progresses, attention remains on sector leadership shifts and policy signals. The interplay between strong fundamentals and valuation discipline will likely shape the Russell 2000’s trajectory in the coming sessions.
On Modi government’s 10-point agenda.
I think it is almost brilliant to put at the head of the list the fact that bureaucrats should be encouraged to take decisions without fear. In a sense he’s gone to the heart of the problem of the paralysis. The Indian government is extraordinarily large and it is difficult to try and believe that one leader can make all the change. This is a federal system. In a large bureaucracy you cannot exercise the transformation of any situation without coopting bureaucracy.
So empowerment becomes important. It’s a good sign. If you remember, one of the major apprehensions about Modi was an autocratic style of functioning. By putting right at the top of the agenda the empowerment of the bureaucracy I think one has to appreciate and admit that it is definitely not the act of an autocrat.
On disbanding ministerial groups.
Without making much heavy weather of it, he’s been a case study for business schools on how to exercise leadership and have an impact from day one in the new job. He’s setting a clear agenda and is making a clear promise of making a measurement of progress made against that clear agenda. For example, making an agenda for 100 days will make it clear what the matrix would be for measuring success of that agenda. It is important that every day some incremental progress is made towards that agenda and that progress is communicated transparently. He has got his team ready, which is a focused team. To me, every decision needn’t be a big-bang reform but a signal of proactive decision-making and removal of red tape and bureaucracy. And a promise of even speedier decision-making in the future.
On the government’s immediate priorities.
Back in the 1980s, I had written a column headlined ‘Roads to Nowhere’. At that time we were not building enough roads. (Among) America’s competitive advantages happen to be its highways and its transportation network. Those are like blood vessels to the economy and they create job opportunities. Therefore, in a funny sense, the best thing anyone can do to create an inclusive economy is ironically through building roads, because access to markets or the lack of access to markets is one of the most discriminatory things one can do to the poor, especially to the rural poor. It’s not a point that we automatically think of but roads are a mechanism to create inclusiveness in the economy. So, I think, the faster he does that the better for the economy. There is huge economic data to show that roads (give) a bigger boost to rural income than even irrigation. It will help power dual income for families and will allow a kind of diversity from dependence on agriculture which creates productivity.
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On India-US ties.
I’ve been here (in the US) for quite a while now. The Indian elections have generated enormous interest. Most of the diplomatic and political pundits are now urging the leadership in Washington not to miss out on what they feel is the diplomatic opportunity for the US in reaching out to and rebuilding a very strong relationship with India. They feel US has lost ground because of the visa controversy and that they should now rediscover the ground and build a strong relationship.
There is a feeling that both Japan and China have both stolen a march on building this kind of relationship with India. There is going to be, in my opinion, a strong effort from decision-makers here to reach out to the prime minister and his colleagues to rebuild the relationship.
On the perception that the new government will tilt more toward the east — Japan, China, South Korea.
There has been significant interest shown by Japan. It is a country with a liquidity overhang and an investment surplus. Modi is well aware of that. Why Japanese investors have been holding back is because they did not perceive any of the promises we’ve given to be gaining traction.
In the area of construction and large industrial projects, they can take pole position in large projects here. That being said, everybody speculated what the position of the PM and the Cabinet would be and the PM is his own man. My contention is that our PM is a practical man and he knows that any kind of vindictiveness has no role in foreign policy.
I think his whole objective is to enhance India’s economic health and through that gain what should be India’s rightful role in the world. The fact that we are the world’s largest democracy and we are all aware that power and a role in global affairs for a nation comes from economic strength. I think, in his own way and at the right time, he will respond positively when the correct signals are sent out from the US administration.
On FDI in defence
We have been consistent from the time we entered into JVs with foreign companies. We have not changed our stance. Right from the beginning we have been representing to the government that it is a positive step to allow at least 49% investment through the automatic route. Because it encourages the foreign partner to deploy the technology into the JV. Otherwise, there is wariness on their part to provide 100% support to the joint venture. So if you really want the best technology to be manufactured here, then (it should be) a minimum of 49% stake, which we have always advocated.
On Mahindra’s investments plans.
We have never shied away from making investments. Even during downcycles, we never stopped our investments. We invested in the Chakan automotive plant when the economy was down; we also invested in the tractor plant in Zaheerabad when the tractor market was witnessing a downcycle. When the market improved for tractors we were able to ramp up our output. We always have a long-term view of the economy. We have consistently been investing. In defence, for example, if the government starts buying again for the much-needed upgrade then we’ll certainly make the investments. Pawan (Goenka) has gone on record to say that we are considering a Rs 4,000-crore investment, which is independent of the new developments. It was something we were going to do.
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NEW YORK — The S&P 500 declined Friday, falling about 81 points or 1.06% to trade near 7,503.78 in morning action, as technology and semiconductor stocks extended losses while a stronger-than-expected May jobs report raised fears of delayed Federal Reserve rate cuts.
The broad market benchmark came under pressure from ongoing rotation out of high-valuation growth names, particularly in artificial intelligence-related sectors. The pullback followed Thursday’s mixed session where the Dow Jones Industrial Average set a record close amid gains in financials and healthcare, highlighting a divergence in market leadership.
The May nonfarm payrolls report showed 172,000 jobs added, significantly beating consensus estimates around 85,000 to 110,000. Unemployment held steady at 4.3%, with upward revisions to prior months signaling a robust labor market. The data pushed Treasury yields higher, with the 10-year note climbing as investors reduced expectations for near-term monetary easing.
Tech Sector Drag Leads Decline
Broadcom’s post-earnings weakness continued to ripple through the market. The semiconductor giant’s shares plunged after its fiscal second-quarter results and forward guidance disappointed investors despite solid AI revenue growth. The selloff spread to peers including Micron, Advanced Micro Devices and Nvidia, weighing heavily on the S&P 500’s technology and communication services sectors.
Analysts viewed the move as profit-taking after months of concentrated gains in a handful of mega-cap names. While AI enthusiasm remains intact, lofty valuations have left the sector vulnerable to any perceived softening in growth narratives or earnings outlooks.
The S&P 500’s information technology sector, a major index driver throughout 2026, faced the brunt of selling pressure. This rotation toward more defensive and value-oriented areas has been a recurring theme as investors seek balance amid elevated multiples in growth stocks.
Economic Data and Policy Implications
Strong employment figures reinforced a resilient U.S. economy but complicated the Federal Reserve’s policy path. With inflation concerns lingering and energy prices influenced by geopolitical tensions, markets now price in fewer rate cuts for the remainder of 2026. Higher borrowing costs typically pressure growth stocks that dominate the S&P 500’s weighting.
The “good news is bad news” dynamic for equities was evident once again. While the jobs data underscores economic strength, it reduces the likelihood of imminent easing that many investors had anticipated to support further market advances.
Financial and healthcare stocks provided some offset, benefiting from the yield environment and defensive characteristics. These sectors helped limit losses in the broader index compared to the more tech-heavy Nasdaq Composite.
Year-to-Date Performance and Market Breadth
The S&P 500 remains solidly positive for 2026 despite Friday’s decline, reflecting broad underlying strength driven by corporate earnings resilience and technological innovation. However, market breadth has narrowed at times, with performance increasingly concentrated in leading names.
Recent earnings seasons have delivered mostly positive surprises, particularly in AI infrastructure and related services. Yet guidance from key players like Broadcom has introduced caution, prompting investors to reassess near-term expectations.
Smaller companies in the Russell 2000 also faced downward pressure, joining the broader risk-off sentiment. This correlation across market caps underscores the pervasive influence of macroeconomic and sector-specific factors on current trading.
Broader Context and Sector Dynamics
Geopolitical developments, including Middle East tensions, added another layer of uncertainty as oil prices fluctuated. Energy stocks showed mixed performance, with some producers benefiting while others faced broader market headwinds.
Consumer staples and utilities offered relative stability, acting as safe havens during the session’s volatility. The divergence highlights a market in transition, where investors balance enthusiasm for long-term growth themes with near-term caution around valuations and policy.
The S&P 500’s forward price-to-earnings ratio remains elevated by historical standards, reflecting optimism about earnings growth but also leaving room for corrections when sentiment shifts. Analysts continue to project solid corporate profit expansion, supported by productivity gains from technology adoption.
Investor Sentiment and Outlook
For market participants, Friday’s action serves as a reminder of the importance of diversification and risk management. While periodic pullbacks are normal in bull markets, they test conviction in underlying fundamentals.
Looking ahead, attention turns to upcoming inflation data, consumer spending reports and further corporate earnings. The market will gauge whether the strong jobs numbers alter the Fed’s trajectory or if subsequent softer indicators emerge.
Many strategists maintain a constructive long-term view on U.S. equities, citing resilient growth, technological advancements and potential policy support. However, they caution about near-term volatility as the year progresses and external risks persist.
The S&P 500’s 52-week range demonstrates both its upside potential and capacity for meaningful corrections. With the index trading well above year-ago levels, the current dip may represent healthy consolidation rather than the start of a deeper downturn, provided economic expansion continues without major disruptions.
Strategic Considerations
Investors with long horizons may view volatility as an opportunity to add to high-quality positions at more attractive valuations. Focus on companies with strong balance sheets, pricing power and exposure to secular trends like AI, infrastructure and domestic manufacturing can help navigate uncertain periods.
Portfolio rebalancing toward sectors showing relative strength, such as financials or healthcare, offers one approach to managing risk. At the same time, maintaining exposure to growth areas ensures participation in potential rebounds.
As trading continues, volume and sector leadership will provide clues about whether selling pressure intensifies or bargain hunters step in. Technical support levels in the S&P 500 will be closely watched alongside fundamental developments.
The interplay between strong economic data, corporate performance and monetary policy expectations will likely shape market direction in the coming weeks. In an environment of evolving AI capabilities and global crosscurrents, the S&P 500 remains a key barometer of investor confidence in American enterprise.
Friday’s modest decline, while notable, fits within the normal fluctuations of a dynamic bull market. Sustained progress will depend on continued earnings delivery and a balanced policy response that supports growth without reigniting inflation.
Companies will explore the role of bioactive proteins in early-life nutrition
NEW YORK — Shares of Argan Inc. jumped more than 10% in morning trading Friday, reaching around $761.67, as investors cheered the engineering and construction company’s robust first-quarter fiscal 2027 results and substantial project backlog amid booming demand for power infrastructure.
The move extended Argan’s remarkable run, with the stock now up over 120% year-to-date and more than 200% over the past year, driven by its role in building critical facilities for data centers and energy projects. The company, which specializes in complex power plant construction and related services, continues to benefit from the surge in artificial intelligence-related infrastructure needs.
Argan reported record revenue of $291 million for the quarter ended April 30, 2026, a 50% increase from the prior-year period. The results far exceeded analyst expectations, with diluted earnings per share of $3.24 compared to consensus estimates around $2.27 to $2.33.
David Watson, president and CEO, highlighted the performance in prepared remarks. “We delivered a strong start to fiscal 2027 with record revenue of $291 million, gross margin of 21%, diluted earnings per share of $3.24, and adjusted EBITDA of $56.4 million.”
The company also maintained a robust project backlog of $2.8 billion at quarter-end, providing strong visibility into future revenue. This backlog reflects ongoing work on large-scale power generation projects, including those supporting data centers and renewable energy transitions.
Strong Execution in Power Segment Drives Momentum
Argan’s performance underscores its expertise in delivering complex, mission-critical infrastructure. The power industry segment has been a key growth driver, with margins expanding due to efficient project execution and favorable contract terms. Analysts noted the results demonstrate the company’s ability to capitalize on secular trends in electricity demand.
Gross margin reached 21% in the quarter, reflecting improved operational efficiency and project mix. The company also announced progress on a new facility in North Carolina, expanding its capacity to serve growing client needs in the Southeast.
With no debt on the balance sheet and substantial cash reserves, Argan maintains significant financial flexibility. This strength allows it to pursue new opportunities while returning value to shareholders through dividends and potential share repurchases.
AI and Data Center Boom Fuels Demand
Argan has positioned itself as a key beneficiary of the artificial intelligence revolution, which requires massive new power capacity for data centers. The company’s services include engineering, procurement and construction for gas-fired and other power plants essential to meeting surging electricity demand.
Industry forecasts suggest the U.S. will need tens of gigawatts of additional power generation in the coming years to support AI infrastructure, creating a favorable tailwind for specialized contractors like Argan. Its proven track record on large, complex projects gives it a competitive edge in bidding for high-value contracts.
The stock’s sensitivity to earnings has been evident in recent quarters, with previous beats leading to significant gains. Friday’s surge followed the after-hours and pre-market reaction to Thursday’s release, as traders digested the beat and raised forward expectations.
Company Background and Market Position
Headquartered in Rockville, Maryland, Argan Inc. operates primarily through its subsidiaries in the power and industrial sectors. It has built a reputation for reliability on challenging projects, often involving tight timelines and technical complexity.
Fiscal 2026 was also a record year, with full-year revenue reaching $944.6 million and net income of $137.8 million. The momentum has carried into the new fiscal year, validating management’s strategy of focusing on high-quality backlog and operational excellence.
Investors have rewarded the consistent execution, pushing the market capitalization higher even as the stock trades at premium valuations. Some analysts maintain buy ratings, citing the earnings visibility from the backlog and exposure to long-term infrastructure themes.
Broader Market Context
The gains in Argan shares contrast with mixed performance across broader indices Friday morning. While the Dow Jones Industrial Average saw modest pressure, infrastructure and industrials stocks with AI exposure have outperformed, reflecting investor rotation toward companies tied to structural growth stories.
Argan’s low debt profile and strong cash position distinguish it in the construction sector, where many peers face balance sheet pressures. This financial discipline has supported steady dividend increases and positions the company well for potential acquisitions or organic expansion.
Outlook and Risks
Looking ahead, Argan expects continued strength as it converts backlog into revenue. Management has guided for a busy year with multiple large projects underway simultaneously. Success in securing new contracts, particularly in data center-related power, will be key to sustaining growth.
Potential risks include project delays, cost overruns common in construction, or shifts in energy policy. However, the diversified nature of its backlog and focus on essential infrastructure provide some insulation. Geopolitical factors affecting supply chains could also influence costs for materials and labor.
Analysts project further earnings growth in the coming year, with some forecasting EPS around $15 or higher. The stock’s 52-week range spans from about $194 to over $748, highlighting both its volatility and upward trajectory.
Friday’s trading volume was elevated as the market reacted positively to the earnings details shared during the conference call. With shares breaking to new highs intraday, technical momentum appears strong, though profit-taking remains a possibility after the sharp move.
Investor Takeaways
Argan’s results exemplify how niche players in the infrastructure space can deliver outsized returns amid transformative economic shifts. For investors, the combination of record financials, a healthy backlog and exposure to AI-driven power demand creates a compelling narrative.
As the company continues to execute, attention will turn to its ability to scale operations while maintaining margins. The upcoming quarters will test whether this momentum translates into sustained outperformance relative to broader industrials.
With solid fundamentals and a clear growth path, Argan remains a notable name in the evolving landscape of critical infrastructure development. Market participants will monitor contract awards and project updates closely in the months ahead.
The central government has complete power with a clear mandate, but directives from the Centre have to be executed well at the state level. So, there are many things that are still not in Modi’s hands, says Raamdeo Agrawal, Joint Managing Director, Motilal Oswal Financial Services in an interview with Narendra Nathan and Sanket Dhanorkar.
Are we looking at a multi-year bull run?
I think the market has not yet priced in the full potential of the economy. For the first time, a true nationalist has come to power with a clear majority. There is a new-found energy across the nation. My sense is that the market has not yet understood the difference between 300-plus seats for NDA and 272-plus seats for BJP alone. Look at how the cabinet posts have been assigned — BJP allies have got limited posts and their negotiating power is diminished. Complete power is in the hands of the government. The political scenario is drastically different now. The economy is on the cusp of a historical positive change.
It is the same vehicle, but the driver has changed. It is now being steered by a formula-one driver. So, the acceleration will be dramatic. It will become visible very quickly. Today we are growing at 4.5 per cent. Growth is likely to pick up pace rapidly in the next few years. A lot of things will happen in five years. It will be interesting to see the index level at that time. In the process, investors will make tons of money, because the market will discount that growth two years in advance. It will not wait for the fifth year. If all domestic and global factors align, markets will go through the roof.
Are there challenges to the fragile economic recovery?
The current optimism is because a major variable — the shambolic political setup — has been corrected. There is no doubt that the new government has been fully empowered in this election; the mandate has been given to an extremely competent individual. Right now, everybody is bullish. But one must have tempered expectations. Finally, directives from the Centre have to be executed well at the state level. Otherwise it will be a waste. There are many things that are still not in Modi’s hands.
A lot of other factors will also play a role. Good monsoons, favourable global environment, peaceful borders, etc., can change the entire scenario. But, only time will tell how many stars will align. So, a lot will depend on external factors. I am also keenly watching how the new government tackles inflation, which is just a symptom of a much deeper problem somewhere else. The government has to address supply-side bottlenecks. A weak currency cannot make a strong country. That is why, inflation must go down. It will be the beginning of development, investments, and so on.
The rally, so far, has been driven by hope. When will fundamentals take over?
News headlines, and making money are two entirely different things. We should not get carried away by the headlines. The focus must be on who will actually make money. In most cases, it will be a company which is making money right now. Very rarely will a company that is broke today make money tomorrow, unless there is a complete change in business dynamics. Today, we do not have anything to go by. So, wherever there are anomalies in the economy, these will come back to normal levels. Right now, it is only about the promise of a better tomorrow. Some of these promises will have to take shape in the budget.
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What should be the first priority for the new government?
India has to become much more business friendly. Finally, the country needs to create jobs for its rising young population. Who will create these jobs? More than the government, it is the businesses which will create jobs. Businesses can create jobs only if the business environment is friendly. They also cannot sustain growth without creating jobs. So, the government has to become business friendly. All hurdles should be removed. We need businesses to take more risks as it will result in more jobs.
Will mid-cap stocks continue to perform better than large-caps for now?
It really depends on the company. Mid-caps were lagging for quite some time; smallcaps even more. Eventually it has to converge. Large-caps are now looking highly priced. Investor appetite is limited at these levels. Most of the action is in the low-quality, low-priced segment. Smaller investors are clearly buying low-quality stuff, thinking that the price is low. But, even if it moves into high valuation territory, low quality will remain so. This is where the entire game ends. Sure, high quality stocks are expensive now. But that doesn’t mean you should have junk in your portfolio. If you find quality at a reasonable price, buy with modest expectations. Such names are few and far between. But, even if you get 3-4 such ideas over one year, you can make money. The challenge is to have patience and hold on to the investment. Filling with junk will be a disaster, but if it works, you get a multi-bagger. Investors in high quality may underperform in a rallying market, but will emerge better off over an entire cycle.
Can we expect an earnings upgrade anytime soon?
A 12-15 per cent earnings upgrade is definitely possible this year. As the economy recovers, sectors, such as cement, steel and automobiles, will pick up pace. Oil & gas can also contribute to earnings growth. Right now corporate profits are contributing around 4 per cent to the GDP, which is near the bottom of the band. At the peak of a cycle, this can go upto 7-8 per cent. Assuming 13-14 per cent nominal growth in GDP, it will double in rupee term to Rs 220 trillion in next six years. Now the question is whether the current profit of Rs 4 trillion will move up to Rs 8 trillion or Rs 16 trillion. If it maintains the current ratio, it will go to Rs 8 trillion. If it touches the upper end of the band, it will go to Rs 16 trillion. If this happens and the PE multiple remains the same, the market will go up four times. Profits will zoom the moment the economy moves from 5-6 per cent to 8-9 per cent growth. That is why there is a potential for the market to go up to the stratospheric levels from here.
Jessica McDonald succeeds Jennifer Jorgensen.
Business
Kevin McHale Says Larry Bird Would Dominate Luka Doncic in Today’s NBA With Superior Physicality
BOSTON — Hall of Famer Kevin McHale, a cornerstone of the Boston Celtics’ 1980s dynasty alongside Larry Bird, believes his former teammate would outperform Los Angeles Lakers star Luka Doncic in the modern NBA, citing Bird’s greater size, strength, speed and competitiveness.
McHale made the comments in a recent interview with The Boston Globe, reflecting on how current NBA defenders struggle against Doncic and imagining Bird’s even greater impact. The remarks have sparked debate among fans and analysts about generational talent comparisons in a league transformed by spacing, analytics and rule changes favoring offensive creativity.
“These are the same dudes that can’t guard Luka Doncic, and Luka Doncic is lighting them up,” McHale said. “And I’m thinking, ‘Larry is bigger, stronger, faster, and meaner than Luka Doncic. And if Luka is lighting these dudes up, it’d be a five-alarm fire what Larry would do.’”
McHale continued his praise for Bird’s physical attributes and driving ability. “Larry would go by you a hell of a lot faster than Luka would go by you. He was a straight-line driver, and he was also just a horse.”
Bird’s Legendary Career and Legacy
Larry Bird, widely regarded as one of the greatest players in NBA history, anchored the Celtics during their dominant run in the 1980s. The 6-foot-9 forward won three NBA championships with Boston in 1981, 1984 and 1986, earning three consecutive Most Valuable Player awards from 1984 to 1986 — a feat matched by only Bill Russell and Wilt Chamberlain.
Known for his exceptional shooting, court vision, clutch performances and fierce competitiveness, Bird thrived in an era of physical, bruising basketball. His rivalry with Magic Johnson and the Lakers defined the decade, elevating the league’s popularity. McHale, a fellow Hall of Famer and three-time champion, played alongside Bird and witnessed his dominance firsthand.
Bird’s all-around game made him a versatile threat capable of scoring from anywhere, passing with precision and rebounding effectively despite not relying on explosive athleticism. His mental toughness and trash-talking added to his aura, often willing his team to victories in high-stakes moments.
Luka Doncic’s Rise and Current Form
Luka Doncic, the 27-year-old Slovenian phenom now with the Lakers, has established himself as one of the NBA’s premier players. In the 2025-26 season, he led the league in scoring for the second time in three years, averaging 33.5 points per game while adding 7.7 rebounds and 8.3 assists.
A six-time All-NBA selection, Doncic has dazzled with his step-back threes, playmaking vision and ability to create offense in isolation or pick-and-roll situations. Though he has yet to win an NBA title or MVP award, his European success with Real Madrid and consistent excellence have drawn comparisons to legendary forwards like Bird due to similarities in style — both excel as big guards/forwards with elite basketball IQ and scoring versatility despite lacking elite vertical explosiveness.
Doncic’s transition to the Lakers has brought new expectations, pairing him with veterans in pursuit of championship contention. His ability to “light up” defenses, as McHale noted, highlights his mastery in today’s spacing-oriented, three-point-heavy game.
The Generational Comparison Debate
McHale’s comments tap into ongoing discussions about how all-time greats would fare in the modern NBA. Rule changes emphasizing perimeter play, freedom of movement and reduced physicality could theoretically benefit skilled players like Bird, who possessed elite fundamentals.
Analysts often note stylistic parallels between Bird and Doncic: both are crafty operators who use pace, fakes and anticipation rather than raw speed. However, McHale argues Bird’s physical edge — described as being “bigger, stronger, faster, and meaner” — would amplify his effectiveness against contemporary defenders.
Critics of such hypotheticals point out the evolution of training, nutrition and strategy, which might level the playing field. Yet Celtics loyalists and older observers frequently champion Bird’s unmatched competitive fire and versatility.
Context Within Celtics and Lakers History
The Celtics-Lakers rivalry adds intrigue to McHale’s remarks. Bird’s battles against Magic Johnson’s Lakers in the 1980s produced some of the NBA’s most memorable Finals. Today, with Doncic in purple and gold, the franchises’ legacies continue to intersect.
McHale’s perspective carries weight as a direct contemporary of Bird. As a forward known for his low-post mastery and defensive prowess, he contributed significantly to three titles and later coached in the league, providing a broad view of its evolution.
Broader NBA Landscape in 2026
The 2025-26 season has featured shifts, with Doncic’s scoring title underscoring individual brilliance amid team pursuits. The Lakers, bolstered by his presence, eye deeper playoff runs, while the Celtics remain a benchmark for sustained excellence.
Discussions like McHale’s enrich fan engagement, blending nostalgia with current stars. They highlight how the NBA’s product has changed — from hand-checking eras to perimeter emphasis — while core elements of skill and will endure.
Younger fans defend Doncic’s unprecedented production at his age, while veterans emphasize intangibles that defined players like Bird. Such debates drive viewership and analysis across platforms.
Impact and Reactions
McHale’s interview has circulated widely, prompting responses from analysts and social media users. Some praise it as insightful tribute to Bird’s greatness, while others view it as generational bias common among former players.
Regardless, it underscores Bird’s enduring legacy. Even decades later, his name surfaces in conversations about the best to ever play, a testament to his impact on and off the court.
For Doncic, being measured against legends like Bird affirms his elite status while motivating further growth. His continued development could fuel more such comparisons in coming seasons.
As the NBA evolves with new talents and strategies, perspectives from icons like McHale provide valuable context. They remind observers that while statistics and styles shift, the essence of competition remains rooted in players who elevate their games and teams through exceptional skill and determination.
Bird’s hypothetical dominance in today’s league, as envisioned by McHale, paints a picture of a transcendent talent whose blend of physicality, savvy and heart would indeed set defenses ablaze. Whether one agrees or not, the discussion celebrates basketball excellence across eras.
PM Images/DigitalVision via Getty Images
SPYT Fast Facts
Defiance S&P 500 Target Income ETF (SPYT) is an actively managed options income ETF launched on 3/7/2024. SPYT has a distribution rate of 20% and a total expense ratio of 0.92%. Distributions are paid on a monthly basis. It is a small ETF, with $149 million in assets under management (“AUM”). Nonetheless, the average daily trading volume of $2.6 million is sufficient for long term investment and tactical allocation as well. The issuer Defiance ETFs is an asset management firm founded in 2018 with 80 ETFs in three categories: leveraged, income, and thematic funds.
Strategy
As described in the prospectus by Defiance ETFs, the fund primarily invests in an ETF tracking the S&P 500 Index, and sells daily credit call spreads on the Index.
A covered call strategy consists of investing in an asset and selling one or more call options on it for a premium. The fund’s call spread strategy adds a long call with a higher strike price for the same expiration date. Buying an additional call reduces the premium income, but also limits the risk of loss on the short call should the underlying asset price surge beyond expectations. Such a strategy enhances income with option premium, and also limits the gains from the underlying index.
In SPYT, call spreads are rolled on a daily basis with near-term expiration. The fund may also gain synthetic exposure to the index by using call options.
The fund targets net premiums of 1.7% per month and an annual cash distribution of approximately 20%. There is no guarantee to reach the target, though. Distributions may include a significant part of return of capital (“ROC”). Distributions in excess of the fund’s earnings will reduce the net asset value, and therefore the dollar amount of future distributions. The portfolio turnover rate was 31% in the most recent fiscal year. I will use State Street SPDR S&P 500 ETF Trust (SPY) as a benchmark.
Portfolio
As an example from 6/5/2026, the fund has 99.9% of net asset value in iShares Core S&P 500 ETF (IVV), and two positions in S&P 500 Index calls (one short and one long) expiring the same day, with strike prices of 7584.31 (short) and 7599.48 (long). The index was at 7553.68 at the previous daily close, meaning the income-generating short call is 0.4% above the closing price, and the protective long call is 0.6% above the closing price. Options will have been rolled if you read this on a later date, and these percentages may change depending on market conditions.
Performance
SPYT has underperformed SPY by 4.1% annualized from 3/14/2024 to 6/5/2026, with slightly lower volatility and similar maximum drawdown.
Data: Portfolio123
Like for most, if not all, buy-write ETFs, the high yield doesn’t offset price underperformance. Excluding distributions, SPYT has lost 11.6% from inception to 6/5/2026, while SPY is up 47%.
SPYT vs SPY price return (Seeking Alpha)
Monthly distributions have been on a slow downtrend following the share price, as plotted below.
SPYT distribution history (Chart: author; data: Defiance ETFs)
Based on the fund’s 19a-1 notice for May 2026, the distribution of that month was 100% Return of Capital (“ROC”). High ROC may have a negative impact on a shareholder’s tax payment. For example, non-resident aliens (“NRA”) may be initially submitted to withholding tax, with an adjustment at year-end that is not always automatic, depending on the broker.
Competitors
The next table compares characteristics of SPYT and four income ETFs based on daily rolled S&P 500 options:
- ProShares S&P 500 High Income ETF (ISPY)
- Roundhill S&P 500 0DTE Covered Call Strategy ETF (XDTE)
- TappAlpha S&P 500 Growth & Daily Income ETF (TSPY)
- Defiance S&P 500 Weekly Distribution ETF (WDTE)
This list is not intended to be exhaustive. In particular, ETFs with less then $50 million in AUM have been excluded. I have also added two non daily-rolled S&P 500 options income ETFs:
* calculated with Portfolio123 from 8/21/2024 to match inception dates.
SPYT is ranked third in yield, sixth in total return between 8/21/24 and 6/5/26, and fourth in Sharpe ratio (a measure of risk-adjusted performance). Investors focused on yield may prefer WDTE or XDTE (with the inconvenient of higher volatility and faster price erosion), while risk-averse investors may choose SPYI or GPIX for total return, lower volatility and asset preservation.
Takeaway
Defiance S&P 500 Target Income ETF (SPYT) aims at a 20% yield with a daily options strategy on the S&P 500 Index. SPYT is best-suited for investors seeking a high and stable yield and accepting significant erosion in asset value, which may be offset by reinvesting a part of distributions.
- Pro: High and stable yield, sufficient liquidity.
- Cons: high expense ratio, high ROC, price erosion.
This article answers three main questions about SPYT:
- What criteria does SPYT have for its holdings selection?
- How does SPYT compare to similar ETFs?
- Which investors is SPYT suitable for?
Editor’s note: This article is intended to provide a general overview of the ETF for educational purposes only and, unlike other articles on Seeking Alpha, does not offer an investment opinion about the ETF.
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