Squawk on the Street SOTS 2nd Hour: China-U.S. Trade Talks Latest: Market Implications, Plus Apple WWDC Breakdown 6/9/25
Jun 9, 2025
Ed Yardeni, President of Yardeni Research, discusses the latest U.S.-China trade talks and remains optimistic about the equity market. He delves into the IPO landscape, highlighting key companies to watch as the market warms up. Yardeni also analyzes Apple's struggles leading up to their annual WWDC conference, noting that their AI strategy isn't the primary concern for investors. Additionally, he touches on Meta's potential $10B investment in AI startup Scale AI and the broader implications for technology and trade.
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Baby Boomers Drive Economy
- Baby boomers hold half of the $80 trillion household net worth and continue to spend despite retirement.
- Their spending on leisure, health, and services drives employment growth, supporting economic resilience.
Earnings Forecasts Support Market
- Earnings expectations for next year have stabilized around $300 per share.
- Applying a 20-22 multiple suggests the S&P could reach 6,000 to 7,000 levels.
Bond Market Stability
- Bond market remains stable with foreign investors buying U.S. securities despite large deficits.
- Any debt crisis would likely be short-lived, pressuring politicians to act.