Squawk on the Street Bulls Rule in 2025, AI from Apple to Nvidia, Blinder's Fed Outlook for 2026 12/31/25
Dec 31, 2025
Mike Santoli, a senior markets commentator, analyzes the strong gains of 2025 and the risks of market concentration heading into a potentially late-phase bull market. Alan Blinder, former Fed Vice Chair, shares his insights on Fed policy, predicting the impacts of AI on employment and the economy in the coming years. They explore exciting developments with Apple’s AI features and the implications of hyperscaler spending on key tech firms like Nvidia and Taiwan Semiconductor, highlighting significant moves in the stock market as 2025 wraps up.
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U.S. Rally Fueled By AI And Global Strength
- U.S. stocks delivered strong returns in 2025, led by AI-adjacent names and big tech gains.
- Foreign markets like South Korea and Taiwan also outperformed, showing a global AI-driven rally.
AI May Pause Hiring Before Reshaping Jobs
- AI's workforce impact remains unclear now but could be seismic once widely adopted in enterprises.
- Businesses may delay hires, substituting productivity gains from AI tools for new headcount in the near term.
Use Revenue Signals To Judge Hyperscaler Spending
- Watch hyperscalers' revenue acceleration as the signal to justify continued heavy AI CapEx.
- Scrutinize cost discipline and CapEx commentary for signs of measured spending or pullbacks.