Squawk on the Street SOTS 2nd Hour: Nvidia Record High Watch, Tech Bears Get Burned, and U.S. Steel Lawsuit Latest 1/6/25
Jan 6, 2025
This conversation features Eric Knudsen, the multi-asset CIO at Neuberger Berman, who shares insights on the 2025 investing landscape, particularly in tech. He discusses the potential of Nvidia amidst AI demand and the ramifications of market volatility. Sarah Kaufman, NYC’s Taxi Commission Commissioner, explores the effects of the city's new congestion pricing, aiming to enhance transit efficiency while navigating legal challenges. Their discourse delves into market dynamics, tech stock growth, and urban transportation innovations.
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Treasury Yield Deconstruction
- Treasury yields are influenced by short-term rate expectations and term premiums.
- The recent rise in yields is mainly due to increasing term premiums, not short-term rate expectations.
Yield Volatility and Investment Strategy
- Focus is shifting from central bank policy to fiscal policy, impacting long-term yields.
- 10-year Treasury yield's fair value is estimated at 4.5%, but could fluctuate between 4% and 5%.
NVIDIA Investment Outlook
- Investors should watch NVIDIA's performance and growth beyond its record year.
- Focus on whether AI tool advancements justify continued investment in NVIDIA chips.