Squawk on the Street Stocks Extend Records Amid Govt. Shutdown, AI Boom vs. Bubble, Goldman Sachs CEO's Market Warning 10/03/25
5 snips
Oct 3, 2025 The S&P 500 and Nasdaq reach new highs despite a government shutdown halting the September jobs report. The AI boom raises questions about a potential bubble, and Goldman Sachs' CEO warns of a future market drawdown. Discussion surrounds the contrasting fates of bank stocks and tech giants, along with insights on retail trends showcasing economic divides. Concerns about falling behind in the global AI race intensify, while recent downgrades for major players like Apple stir debate among investors. Economic impacts of the prolonged shutdown loom large.
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Data Centers Power The Current Rally
- AI-driven data center buildout is a primary driver of current GDP growth and market leadership.
- Jim Cramer warns this concentrated growth may mask broader economic weakness outside AI infrastructure.
Goldman Flags Potential AI Drawdown
- Goldman Sachs' CEO warns the AI surge could bring a drawdown once overinvestment disappoints.
- The hosts acknowledge capital may be deployed into projects that ultimately fail to deliver expected returns.
Hold Apple Unless You Trade Aggressively
- For most individual investors, Cramer recommends 'hold, don't trade' on Apple amid conflicting analyst calls.
- Avoid frequent trading around analyst flip-flops unless you are an aggressive hedge-fund style trader.
