Squawk on the Street SOTS 2nd Hour: CPI Breakdown, Fed Implications, and Live from Riyadh: Elon Musk & Jensen Huang 5/13/25
5 snips
May 13, 2025 
Eamon Javers, CNBC correspondent, shares insights on the White House's economic policy, while Randy Kroszner, former Fed Governor, discusses potential interest rate cuts later this year. Elon Musk captivates with his vision on robotics and AI at the Saudi-US Investment Forum, emphasizing technological advancements. The conversation dives into the implications of $600 billion investments in Saudi Arabia and examines shelter inflation and its impact on the housing market. The podcast also highlights the dynamic shifts in the semiconductor market and innovation in autonomous vehicles.
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Saudi-US $600B Investment Deal
- The Saudi-US Investment Forum highlights a $600 billion investment plan involving AI and infrastructure between Saudi Arabia and US companies.
- This demonstrates a strategic partnership aiming to diversify Saudi Arabia's economy beyond oil and enhance technological collaboration.
Fed Inflation Outlook Slow
- CPI inflation is decreasing slowly, making it harder for the Fed to reach its 2% target quickly.
- The economy is slowing due to higher inflation-adjusted interest rates, but stagflation currently is unlikely.
Market Recovery and Valuation
- The S&P 500's recovery suggests a new bull market phase, with broadening investor demand across sectors.
- Earnings expectations need improvement to sustain further gains beyond the market's current valuation premium.
