Squawk on the Street SOTS 2nd Hour: Palantir Slumps, CNBC Recession Odds and Milken: Day 2 with Ares CEO, Morgan Stanley Co-Pres. 5/6/25
May 6, 2025
Dan Simkowitz, Co-president of Morgan Stanley, shares insights on the current capital markets, including M&A and IPO trends. David Koston, Goldman Sachs' chief U.S. equity strategist, discusses his market outlook and the resilience of the Mag-7 tech stocks despite recession odds rising significantly. Michael Arragetti, CEO of Ares Management, dives into alternative investing and the growing role of private credit in today's economy, revealing how these strategies are adapting to changing market dynamics.
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Calm Amid Economic Uncertainty
- CEOs at the Milken conference show calm despite economic risks, reflecting market and policy stabilizations.
- The resilient consumer and absence of deep spending decline contrast with weakening confidence surveys.
Market Prices Optimism Amid Risk
- The equity market prices the best economic outcome despite rising recession risks.
- This leads to high stock valuations amid uncertainty and wide disparity in company guidance.
Tech Stock Declines Precede Tariffs
- Meg-7 tech stock declines preceded tariff concerns, triggered by capital spending scrutiny.
- Broader market gains suggest an equal-weighted portfolio approach outperforms cap-weighted.