IBKR Podcasts Will the Fed Serve Up a Cut?
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Nov 25, 2025 Steve Sosnick, Chief Market Strategist, shares insights on recent Fed discussions and how they impact market dynamics. He explains the shift in rate-cut odds following John Williams' comments and analyzes the implications of tech giants' AI spending. Sosnick questions the productivity of massive AI investments despite strong cash flows, and identifies chipmakers like NVIDIA as key beneficiaries. He also discusses potential dissent within the FOMC and what that could mean for December trading, highlighting critical factors investors should watch.
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Markets Track Fed Fund Probabilities
- The stock market has closely tracked shifts in Fed funds cut probabilities, especially after comments from influential Fed officials.
- Steve Sosnick highlights John Williams' remarks as the catalyst for last week's market rebound.
AI Spending Outruns Clear Monetization
- Big tech's AI hyperscaling has prompted record bond issuance but revenue models remain unclear.
- Sosnick warns that spending may outpace monetization and that winners are still uncertain.
Picks And Shovels Are Winning Now
- In the AI gold rush, chip and infrastructure suppliers are currently capturing most profits.
- Sosnick points to NVIDIA and Broadcom as beneficiaries while questioning end-user monetization.