Squawk on the Street SOTS 2nd Hour: Micron Takeaways, Alibaba Spending Plans, & A New Nvidia Challenger... PLUS: PGA of America CEO Talks Ryder Cup 9/24/25
Sep 24, 2025
Gabriela Santos, Chief Market Strategist for J.P. Morgan, dives into market dynamics driven by monetary policy and the implications for stocks and bonds. Jonathan Ross, Founder and CEO of Groq, explains his company's innovative approach to AI chips, focusing on cost and energy efficiency. Diana Olick reports on surprising new home sales figures, highlighting a rise in prices despite mortgage rate challenges. Plus, insights on Alibaba's massive $53 billion AI spending and the economic impact of the upcoming Ryder Cup.
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Fed Cuts Won't Repeat Past Cycles
- Fed rate cuts may help stocks and bonds but the upcoming cycle differs from past ones due to lower inflation and less liquidity.
- Expect soggy growth, curve steepening, weaker dollar, and structural drivers like AI to shape returns.
Adjust Portfolios For Stretched Valuations
- Consider adding active managers in U.S. equities and increasing international equity exposure as valuations have stretched.
- Hedge marginally if equity exposure is too high and use options or other protective strategies.
Policy Impact, Not Just Policy Changes
- Policy impact matters more than policy change; tariffs that don't show in CPI can hit corporate margins.
- Watch margin disappointment risk, especially for consumer sectors and small/mid caps.