Squawk on the Street SOTS 2nd Hour: Return of the AI Trade? Goldman Cuts Recession Odds, and Live: Coinbase CEO 5/14/25
May 14, 2025
Gene Sirocco, Executive Director of the Port of Los Angeles, discusses the current lack of a surge in container ship arrivals, despite rising concerns over tariffs with China. Sheila Kayalu, an aerospace analyst at Jeffries, shares insights on the booming chip stocks led by Nvidia and AMD and the hopeful signals from Goldman Sachs regarding recession odds. The conversation also touches on Coinbase's future under positive crypto regulations and Boeing's massive jet order, highlighting the evolving landscape of trade and technology.
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Revival of the AI Trade
- The AI trade has revived with strong gains in chip stocks like Nvidia and AMD.
- Despite recent market pressure, these mega cap tech companies remain key U.S. market leaders.
Goldman Sees Milder Recession Risks
- Goldman Sachs lowered recession odds to 35% due to easing tariffs and financial conditions.
- The U.S. economy faces mediocre growth but avoids severe recession thanks to strong corporate balance sheets.
Federal Reserve Rate Cut Outlook
- The Fed likely will delay rate cuts until inflation shows clear decline, with first cut expected in December.
- Markets are adjusting expectations as risk of immediate cuts decreases.