Squawk on the Street Goldman Sachs' 2025 AI Predictions, Bitcoin Falls & Mag 7 Performance 12/26/24
Dec 26, 2024
The podcast dives into the current financial landscape, highlighting a downturn in futures trading. It examines the impact of Bitcoin's drop and Apple's ambitious market cap goals. Small-cap stocks are underperforming but show potential for rebound. The discussion focuses on tech giants like Apple and Netflix, analyzing their strategic moves amidst mixed market conditions. Additionally, the economic performance of various sectors is assessed, including the challenges facing the energy industry and Disney's box office resurgence.
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Market Performance and Expectations
- The S&P 500 has closed at record highs 57 times this year, exceeding expectations.
- Despite this, earnings and growth expectations for the coming year remain stable.
Bond Market vs. the Fed
- The 10-year treasury yield is rising, indicating market disagreement with the Fed's rate cuts.
- The market believes inflation will be sticky despite the Fed's actions.
Rising Treasury Yields
- The 10-year Treasury yield is near its highest level since 2022, counter to the Fed's intentions.
- This rise likely reflects a stronger-than-expected economy and persistent inflation.